I
104TH CONGRESS
1ST SESSION
H. R. 1370
To amend the Internal Revenue Code of 1986 to reduce mandatory premiums
to the United Mine Workers of America Combined Benefit Fund by
certain surplus amounts in the Fund, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 30, 1995
Mr. MYERS of Indiana (for himself, Mr. HANCOCK, Mr. ARMEY, Mr. THOMAS,
Mr. SHAW, Mrs. JOHNSON of Connecticut, Mr. BUNNING of Kentucky,
Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr. CAMP, Mr. RAMSTAD,
Mr. ZIMMER, Mr. SAM JOHNSON of Texas, Ms. DUNN of Washington,
Mr. COLLINS of Georgia, Mr. PORTMAN, Mr. ENGLISH of Pennsylvania,
Mr. ENSIGN, Mr. CHRISTENSEN, Mrs. KENNELLY, Mr. PAYNE of Vir-
ginia, and Mr. POMEROY) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to reduce
mandatory premiums to the United Mine Workers of
America Combined Benefit Fund by certain surplus
amounts in the Fund, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REDUCTION IN REQUIRED PREMIUMS TO COM-
BINED FUND BY EXCESS SURPLUS IN FUND.
(a) IN GENERAL.—Paragraph (3) of section 9704(e)
of the Internal Revenue Code of 1986 (relating to short-
falls and surpluses) is amended to read as follows:
‘‘(3) SHORTFALLS AND SURPLUSES.—
‘‘(A) DETERMINATIONS.—
‘‘(i) IN
GENERAL.—Subject to the
provisions of clause (iv), the trustees of the
Combined Fund shall, as of the close of
each plan year beginning on or after Octo-
ber 1, 1993—
‘‘(I) determine any shortfall or
surplus in any premium account es-
tablished under paragraph (1) and, to
the maximum extent possible, reduce
or eliminate any shortfall in any such
account by transferring amounts to it
from any surplus in any other such
account, and
‘‘(II) determine, after any trans-
fers under subclause (I), the aggre-
gate shortfall or surplus in the Com-
bined Fund, taking into account all
receipts of any kind during the plan
year from all sources.
‘‘(ii) 
DETERMINATIONS
MADE
ON
CASH FLOW BASIS.—
‘‘(I) IN
GENERAL.—Subject to
the provisions of subclause (II) and
clause (iii), any determination under
clause (i) for any plan year shall be
determined under the cash receipts
and disbursements method of account-
ing, taking into account only receipts
and disbursements for the plan year.
‘‘(II) CERTAIN PRIOR YEAR SUR-
PLUSES.—For purposes of applying
subclause (I) for any plan year, any
surplus determined under subpara-
graph (A)(i)(II) as of the close of the
preceding plan year, including any
portion used as provided in subpara-
graph (B), shall be treated as received
in the Combined Fund as of the be-
ginning of the plan year.
‘‘(iii) DISREGARD
OF
TRANSFERRED
AMOUNTS.—For purposes of this subpara-
graph—
‘‘(I) no amount transferred to
the Combined Fund under section
9705, and no disbursements made
from such amount, shall be taken into
account in making any determination
under subparagraph (A) for the plan
year of the transfer or any subsequent
plan year, and
‘‘(II) any amount in a premium
account which was transferred to the
Combined Fund under section 9705
may not be transferred to another ac-
count under clause (i)(I).
‘‘(iv) SPECIAL
RULE
FOR
1994.—In
the case of the plan year ending September
30, 1994, the determinations under sub-
paragraph (A) shall be made for the period
beginning February 1, 1993, and ending
September 30, 1994.
‘‘(B) TREATMENT OF SURPLUS.—
‘‘(i) NONPREMIUM
ADJUSTMENTS.—
Any surplus determined under subpara-
graph (A)(i)(II) for any plan year shall be
used first for purposes of the carryover
under section 9703(b)(2)(C), but only to
the extent the amount of such carryover
does not exceed 10 percent of the benefits
and administrative costs paid by the Com-
bined Fund during the plan year (deter-
mined without regard to benefits paid from
transfers under section 9705).
‘‘(ii) PREMIUM
ADJUSTMENTS.—The
annual premium for any plan year for each
assigned operator which is not a 1988
agreement operator shall be reduced by an
amount which bears the same ratio to the
surplus determined under subparagraph
(A)(i)(II) for the preceding plan year (re-
duced as provided under clause (i)) as—
‘‘(I) such assigned operator’s ap-
plicable percentage (expressed as a
whole number), bears to
‘‘(II) the sum of the applicable
percentages (expressed as whole num-
bers) of all assigned operators which
are not 1988 agreement operators.
The reduction in any annual premium
under this clause shall be allocated to the
premium accounts established under para-
graph (1) in the same manner as the an-
nual premium would have been allocated
without regard to this clause, and in the
case of assigned operators which sought
protection under title 11 of the United
States Code before October 24, 1992, with-
out regard to section 9706(b)(1)(A). An
assigned operator which is delinquent in
paying any of the premiums assessed
against the operator before the date of the
enactment of this sentence (or assessed at
any time after such date) shall not be eligi-
ble for a reduction under this clause unless
the operator satisfies the delinquency. For
purposes of the preceding sentence, an as-
signed operator shall not be treated as de-
linquent with respect to any amount held
in escrow, or subject to court-approved se-
curity, pending final determination of as-
sessment.
‘‘(C) SHORTFALLS.—If a shortfall is deter-
mined under subparagraph (A)(i)(II) for any
plan year, the annual premium for each as-
signed operator shall be increased by an
amount equal to such assigned operator’s appli-
cable percentage of the shortfall. Any increase
under this subparagraph shall be allocated to
each premium account with a shortfall.
‘‘(D) NO
AUTHORITY
FOR
INCREASE.—
Nothing in this paragraph shall be construed to
allow expenditures for health care benefits in
any plan year in excess of the limit under sec-
tion 9703(b)(2).
‘‘(E) SPECIAL
RULE
FOR
1995.—In the
case of the plan year beginning October 1,
1994, the adjustment under subparagraph (B)
shall be made effective as of such date and any
assigned operator which receives a reduction in
premiums under subparagraph (B) shall be en-
titled to a credit to the extent it has paid, tak-
ing the reduction into account, excessive pre-
miums during plan year.’’
(b) AMOUNT
OF PER BENEFICIARY PREMIUM.—
Paragraph (2) of section 9704(b) of the Internal Revenue
Code of 1986 (defining per beneficiary premium) is
amended—
(1) by striking subparagraph (A) and inserting:
‘‘(A) $2,116.67, plus’’, and
(2) by striking ‘‘the amount determined under
subparagraph (A)’’ in subparagraph (B) and insert-
ing ‘‘$2,116.67,’’.
(c) CONFORMING AMENDMENT.—Clause (ii) of sec-
tion 9703(b)(2)(A) of the Internal Revenue Code of 1986
is amended by inserting ‘‘(without regard to any reduction
under section 9704(e)(3)(B)(ii))’’ after ‘‘for the plan
year’’.
SEC. 2. DISCLOSURE REQUIREMENTS.
(a) IN GENERAL.—Section 9704(h) of the Internal
Revenue Code of 1986 (relating to information) is amend-
ed by adding at the end the following new paragraph:
‘‘(2) INFORMATION TO CONTRIBUTORS.—
‘‘(A) IN
GENERAL.—The trustees of the
Combined Fund shall, within 30 days of a writ-
ten request, make available to any person re-
quired to make contributions to the Combined
Fund or their agent—
‘‘(i) all documents which reflect its fi-
nancial and operational status, including
documents under which it is operated, and
‘‘(ii) all documents prepared at the re-
quest of the trustees or staff of the Com-
bined Fund which form the basis for any
of its actions or reports, including the eli-
gibility of participants in predecessor
plans.
‘‘(B) FEES.—The trustees may charge rea-
sonable fees (not in excess of actual expenses)
for providing documents under this paragraph.’’
(b) CONFORMING AMENDMENT.—Section 9704(h) of
the Internal Revenue Code of 1986 is amended by striking
‘‘(h) INFORMATION.—The’’ and inserting:
‘‘(h) INFORMATION.—
‘‘(1) INFORMATION TO SECRETARY.—The’’.
Æ