Document ID: ./input/supremecourt_opinions/opinions/boundvolumes/524bv.pdf
Page Number: 560

524US2

Unit: $U94

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Cite as: 524 U. S. 498 (1998)

515

Opinion of O(cid:146)Connor, J.

on the following formula, by which retirees are assigned to
particular operators:

“For purposes of this chapter, the Commissioner of
Social Security shall . . . assign each coal industry retiree
who is an eligible beneﬁciary to a signatory operator
which (or any related person with respect to which) re-
mains in business in the following order:

“(1) First, to the signatory operator which—
“(A) was a signatory to the 1978 coal wage agreement

or any subsequent coal wage agreement, and

“(B) was the most recent signatory operator to em-
ploy the coal industry retiree in the coal industry for at
least 2 years.

“(2) Second, if the retiree is not assigned under para-

graph (1), to the signatory operator which—

“(A) was a signatory to the 1978 coal wage agreement

or any subsequent coal wage agreement, and

“(B) was the most recent signatory operator to em-

ploy the coal industry retiree in the coal industry.

“(3) Third, if the retiree is not assigned under para-
graph (1) or (2), to the signatory operator which em-
ployed the coal industry retiree in the coal industry for
a longer period of time than any other signatory opera-
tor prior to the effective date of the 1978 coal wage
agreement.” § 9706(a).

It is the application of the third prong of the allocation for-
mula, § 9706(a)(3), to Eastern that we review in this case.3

3 The Coal Act also provides for an allocation of liability for unassigned
beneﬁciaries. See 26 U. S. C. § 9704(d). That liability, however, has thus
far been covered through the transfer of funds from other sources. See
§ 9705; 30 U. S. C. § 1232(h). This case presents no question regarding the
assignment to Eastern of liability for any retirees other than its own
former employees.