Title: American Miners Pension Act of 2017
Policy area: Labor and Employment

Summary:
American Miners Pension Act of 2017
This bill amends the Surface Mining Control and Reclamation Act of 1977 (SMCRA) to transfer certain funds and provide loans to the 1974 United Mine Workers of America (UMWA) Pension Plan in order to provide pension benefits for retired coal miners.
The bill requires the Department of the Treasury to transfer additional funds from the Abandoned Mine Reclamation Fund and the General Fund of the Treasury to the 1974 UMWA Pension Plan to pay pension benefits required under that plan if the amounts available for transfer under SMCRA's $490 million annual limit exceed the amounts required to be transferred for other purposes (including to the UMWA Health Plans). The bill prohibits the plan from making certain changes to benefits during any year in which a transfer is received.
Treasury must make annual loans to the plan equal to the amount certified by the trustees of the plan as necessary to prevent insolvency. The loans may not exceed $600 million per year. The trustees must annually certify that the plan is projected to be solvent and is able to repay the loans under terms specified in the bill.
The bill also establishes additional reporting requirements for the plan.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1911 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1911

  To amend the Surface Mining Control and Reclamation Act of 1977 to 
   transfer certain funds to the 1974 United Mine Workers of America 
                 Pension Plan, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2017

   Mr. Manchin (for himself, Mrs. Capito, Mr. Brown, Mr. Casey, Mrs. 
McCaskill, Mr. Donnelly, Ms. Duckworth, Mr. Kaine, Mr. Warner, and Ms. 
   Heitkamp) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Surface Mining Control and Reclamation Act of 1977 to 
   transfer certain funds to the 1974 United Mine Workers of America 
                 Pension Plan, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Miners Pension Act of 
2017''.

SEC. 2. TRANSFERS TO 1974 UMWA PENSION PLAN.

    (a) In General.--Subsection (i) of section 402 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232) is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Additional amounts.--
                    ``(A) Calculation.--If the dollar limitation 
                specified in paragraph (3)(A) exceeds the aggregate 
                amount required to be transferred under paragraphs (1) 
                and (2) for a fiscal year, the Secretary of the 
                Treasury shall transfer an additional amount equal to 
                the difference between such dollar limitation and such 
                aggregate amount to the trustees of the 1974 UMWA 
                Pension Plan to pay benefits required under that plan.
                    ``(B) Cessation of transfers.--The transfers 
                described in subparagraph (A) shall cease as of the 
                first fiscal year beginning after the first plan year 
                for which the funded percentage (as defined in section 
                432(i)(2) of the Internal Revenue Code of 1986) of the 
                1974 UMWA Pension Plan is at least 100 percent, taking 
                fully into account all outstanding liabilities for 
                loans made pursuant to subparagraph (D).
                    ``(C) Prohibition on benefit increases, etc.--
                During a fiscal year in which the 1974 UMWA Pension 
                Plan is receiving transfers under subparagraph (A), no 
                amendment of such plan which increases the liabilities 
                of the plan by reason of any increase in benefits, any 
                change in the accrual of benefits, or any change in the 
                rate at which benefits become nonforfeitable under the 
                plan may be adopted unless the amendment is required as 
                a condition of qualification under part I of subchapter 
                D of chapter 1 of the Internal Revenue Code of 1986.
                    ``(D) Treatment of transfers for purposes of 
                withdrawal liability under erisa.--The amount of any 
                transfer made under subparagraph (A) (and any earnings 
                attributable thereto) shall be disregarded in 
                determining the unfunded vested benefits of the 1974 
                UMWA Pension Plan and the allocation of such unfunded 
                vested benefits to an employer for purposes of 
                determining the employer's withdrawal liability under 
                section 4201 of the Employee Retirement Income Security 
                Act of 1974.
                    ``(E) Additional loan authority.--
                            ``(i) In general.--In addition to the 
                        amounts transferred under any provision other 
                        than this subparagraph, and without regard to 
                        the limitations described in paragraph (3), 
                        each year beginning with fiscal year 2018 the 
                        Secretary of the Treasury shall transfer to the 
                        1974 UMWA Pension Plan as a loan the amount 
                        certified by the Trustees of the 1974 UMWA 
                        Pension Plan to be necessary to prevent the 
                        insolvency of such plan.
                            ``(ii) Annual cap.--The amount of each 
                        annual loan under clause (i) shall not exceed 
                        $600,000,000.
                            ``(iii) Loan terms.--
                                    ``(I) In general.--Each such annual 
                                loan shall bear interest at the rate of 
                                1 percent per annum, and each shall be 
                                treated as a separate loan.
                                    ``(II) Repayment.--For the first 10 
                                years of each such loan, only the 
                                interest on such loan shall be 
                                repayable, and payments on the 
                                principal shall be distributed over the 
                                30-year period beginning with the 11th 
                                year of the loan.
                                    ``(III) Additional payments.--
                                Notwithstanding subclauses (I) and 
                                (II), to the extent that the Trustees 
                                of the 1974 UMWA Pension Plan certify 
                                that such plan has surplus assets which 
                                are not needed to pay benefits under 
                                the plan or to ensure the future 
                                solvency of the plan, such surplus 
                                assets shall be applied towards the 
                                repayment of the oldest outstanding 
                                loan made pursuant to this 
                                subparagraph.
                                    ``(IV) Maintenance of certain 
                                measures under rehabilitation plan.--
                                Each loan under this subparagraph shall 
                                specify as a condition of the loan 
                                that, if the 1974 UMWA Pension Plan 
                                emerges from critical status (within 
                                the meaning of section 432 of the 
                                Internal Revenue Code of 1986 and 
                                section 305 of the Employee Retirement 
                                Income Security Act of 1974), the Plan 
                                will continue to meet the requirements 
                                of section 432(b)(3) of such Code and 
                                305(b)(3) of such Act, and the measures 
                                adopted pursuant to section 
                                432(e)(3)(A)(ii) of such Code and 
                                section 305(e)(3)(A)(ii) of such Act 
                                will remain in place. During the period 
                                such measures are required to remain in 
                                place, sections 412(b)(3) of such Code 
                                and 302(b)(3) of such Act shall 
                                continue to apply as if the plan were 
                                still in critical status.
                            ``(iv) Annual certification.--Each year 
                        beginning with fiscal year 2018, the Trustees 
                        of the 1974 UMWA Pension Plan shall certify the 
                        amount required to be loaned pursuant to clause 
                        (i) and the amount of any surplus assets 
                        described in clause (iii)(III). Such 
                        certification shall also include a 
                        certification that--
                                    ``(I) such loan amount, in 
                                combination with future amounts 
                                available to the Plan, is projected to 
                                be sufficient to maintain indefinitely 
                                the solvency of the plan (without 
                                regard to any outstanding loan 
                                balance); and
                                    ``(II) the Plan is projected to be 
                                able to repay the amount of such loan, 
                                with interest, as required under clause 
                                (iii).
                        The preceding sentence shall not apply with 
                        respect to any year in which the amount 
                        determined by the Trustees under clause (i) is 
                        $0 and no loans under this subparagraph remain 
                        outstanding.
                            ``(v) Plan insolvency or default.--If the 
                        1974 UMWA Pension Plan becomes insolvent in any 
                        year despite receiving loan amounts under this 
                        subparagraph, or if the Plan is unable to make 
                        any payment on a loan under this subparagraph 
                        when due, employers contributing to the Plan 
                        and employer associations with members 
                        contributing to the Plan shall not be subject 
                        to any new or increased liability, including 
                        any increased fee, expense, contribution, 
                        assessment, or surcharge.
                            ``(vi) Insolvency.--For purposes of this 
                        subparagraph, a plan is insolvent if the plan's 
                        available resources are not sufficient to pay 
                        benefits under the plan when due for the plan 
                        year and as projected indefinitely into future 
                        plan years, or if the plan is determined to be 
                        insolvent under section 418E(d) of the Internal 
                        Revenue Code of 1986.
                            ``(vii) Initial loan.--The first loan under 
                        this subparagraph shall be made not later than 
                        60 days after the date of enactment of the 
                        American Miners Pension Act of 2017.
                    ``(F) Enhanced annual reporting.--
                            ``(i) In general.--Not later than the 90th 
                        day of each plan year beginning after the date 
                        of enactment of the American Miners Pension Act 
                        of 2017, the trustees of the 1974 UMWA Pension 
                        Plan shall file with the Secretary of the 
                        Treasury or the Secretary's delegate and the 
                        Pension Benefit Guaranty Corporation a report 
                        (including appropriate documentation and 
                        actuarial certifications from the plan actuary, 
                        as required by the Secretary of the Treasury or 
                        the Secretary's delegate) that contains--
                                    ``(I) whether the plan is in 
                                endangered or critical status under 
                                section 305 of the Employee Retirement 
                                Income Security Act of 1974 and section 
                                432 of the Internal Revenue Code of 
                                1986 as of the first day of such plan 
                                year;
                                    ``(II) the funded percentage (as 
                                defined in section 432(i)(2) of such 
                                Code) as of the first day of such plan 
                                year, and the underlying actuarial 
                                value of assets and liabilities taken 
                                into account in determining such 
                                percentage;
                                    ``(III) the market value of the 
                                assets of the plan as of the last day 
                                of the plan year preceding such plan 
                                year;
                                    ``(IV) the total value of all 
                                contributions made during the plan year 
                                preceding such plan year;
                                    ``(V) the total value of all 
                                benefits paid during the plan year 
                                preceding such plan year;
                                    ``(VI) cash flow projections for 
                                such plan year and either the 6 or 10 
                                succeeding plan years, at the election 
                                of the trustees, and the assumptions 
                                relied upon in making such projections;
                                    ``(VII) funding standard account 
                                projections for such plan year and the 
                                9 succeeding plan years, and the 
                                assumptions relied upon in making such 
                                projections;
                                    ``(VIII) the total value of all 
                                investment gains or losses during the 
                                plan year preceding such plan year;
                                    ``(IX) any significant reduction in 
                                the number of active participants 
                                during the plan year preceding such 
                                plan year, and the reason for such 
                                reduction;
                                    ``(X) a list of employers that 
                                withdrew from the plan in the plan year 
                                preceding such plan year, and the 
                                resulting reduction in contributions;
                                    ``(XI) a list of employers that 
                                paid withdrawal liability to the plan 
                                during the plan year preceding such 
                                plan year and, for each employer, a 
                                total assessment of the withdrawal 
                                liability paid, the annual payment 
                                amount, and the number of years 
                                remaining in the payment schedule with 
                                respect to such withdrawal liability;
                                    ``(XII) any material changes to 
                                benefits, accrual rates, or 
                                contribution rates during the plan year 
                                preceding such plan year;
                                    ``(XIII) any scheduled benefit 
                                increase or decrease in the plan year 
                                preceding such plan year having a 
                                material effect on liabilities of the 
                                plan;
                                    ``(XIV) details regarding any 
                                funding improvement plan or 
                                rehabilitation plan and updates to such 
                                plan;
                                    ``(XV) the number of participants 
                                and beneficiaries during the plan year 
                                preceding such plan year who are active 
                                participants, the number of 
                                participants and beneficiaries in pay 
                                status, and the number of terminated 
                                vested participants and beneficiaries;
                                    ``(XVI) the information contained 
                                on the most recent annual funding 
                                notice submitted by the plan under 
                                section 101(f) of the Employee 
                                Retirement Income Security Act of 1974;
                                    ``(XVII) the information contained 
                                on the most recent Department of Labor 
                                Form 5500 of the plan; and
                                    ``(XVIII) copies of the plan 
                                document and amendments, other 
                                retirement benefit or ancillary benefit 
                                plans relating to the plan and 
                                contribution obligations under such 
                                plans, a breakdown of administrative 
                                expenses of the plan, participant 
                                census data and distribution of 
                                benefits, the most recent actuarial 
                                valuation report as of the plan year, 
                                copies of collective bargaining 
                                agreements, and financial reports, and 
                                such other information as the Secretary 
                                of the Treasury or the Secretary's 
                                delegate, in consultation with the 
                                Secretary of Labor and the Director of 
                                the Pension Benefit Guaranty 
                                Corporation, may require.
                            ``(ii) Electronic submission.--The report 
                        required under clause (i) shall be submitted 
                        electronically.
                            ``(iii) Information sharing.--The Secretary 
                        of the Treasury or the Secretary's delegate 
                        shall share the information in the report under 
                        clause (i) with the Secretary of Labor.
                            ``(iv) Penalty.--Any failure to file the 
                        report required under clause (i) on or before 
                        the date described in such clause shall be 
                        treated as a failure to file a report required 
                        to be filed under section 6058(a) of the 
                        Internal Revenue Code of 1986, except that 
                        section 6652(e) of such Code shall be applied 
                        with respect to any such failure by 
                        substituting `$100' for `$25'. The preceding 
                        sentence shall not apply if the Secretary of 
                        the Treasury or the Secretary's delegate 
                        determines that reasonable diligence has been 
                        exercised by the trustees of such plan in 
                        attempting to timely file such report.
                    ``(G) 1974 umwa pension plan defined.--For purposes 
                of this paragraph, the term `1974 UMWA Pension Plan' 
                has the meaning given the term in section 9701(a)(3) of 
                the Internal Revenue Code of 1986, but without regard 
                to the limitation on participation to individuals who 
                retired in 1976 and thereafter.''.
    (b) Coordination With Taxation of Unrelated Business Income.--
Subparagraph (A) of section 514(c)(6) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii)(II) 
        and inserting ``, or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) indebtedness with respect to the 
                        1974 UMWA Pension Plan (as defined in section 
                        402(i)(4)(G) of the Surface Mining Control and 
                        Reclamation Act of 1977) under a loan made by 
                        the Secretary pursuant to section 402(i)(4)(E) 
                        of the Surface Mining Control and Reclamation 
                        Act of 1977.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after September 30, 2016.
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