Miners Pension Protection Act

I 116TH CONGRESS 1ST SESSION H. R. 935 To provide for transfers to the 1974 UMWA pension plan and a reduction in the minimum age for allowable in-service distributions. IN THE HOUSE OF REPRESENTATIVES JANUARY 31, 2019 Mr. MCKINLEY (for himself, Mr. BOST, Mr. RODNEY DAVIS of Illinois, Mr. WELCH, Mr. MOONEY of West Virginia, Mr. NORCROSS, Mr. LAMB, Mr. MICHAEL F. DOYLE of Pennsylvania, Mrs. MILLER, and Mr. FITZPATRICK) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for transfers to the 1974 UMWA pension plan and a reduction in the minimum age for allowable in- service distributions. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Miners Pension Protec- 4 tion Act’’. 5 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 2 •HR 935 IH SEC. 2. TRANSFERS TO 1974 UMWA PENSION PLAN. 1 (a) IN GENERAL.—Subsection (i) of section 402 of 2 the Surface Mining Control and Reclamation Act of 1977 3 (30 U.S.C. 1232), as amended by the Further Continuing 4 and Security Assistance Appropriations Act, 2017, is 5 amended— 6 (1) in paragraph (3)(A), by striking 7 ‘‘$490,000,000’’ and inserting ‘‘$750,000,000’’; 8 (2) by redesignating paragraph (4) as para- 9 graph (5); and 10 (3) by inserting after paragraph (3) the fol- 11 lowing: 12 ‘‘(4) ADDITIONAL AMOUNTS.— 13 ‘‘(A) CALCULATION.—If the dollar limita- 14 tion specified in paragraph (3)(A) exceeds the 15 aggregate amount required to be transferred 16 under paragraphs (1) and (2) for a fiscal year, 17 the Secretary of the Treasury shall transfer an 18 additional amount equal to the difference be- 19 tween such dollar limitation and such aggregate 20 amount to the trustees of the 1974 UMWA 21 Pension Plan to pay benefits required under 22 that plan. 23 ‘‘(B) CESSATION OF TRANSFERS.—The 24 transfers described in subparagraph (A) shall 25 cease as of the first fiscal year beginning after 26 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 3 •HR 935 IH the first plan year for which the funded per- 1 centage (as defined in section 432(j)(2) of the 2 Internal Revenue Code of 1986) of the 1974 3 UMWA Pension Plan is at least 100 percent. 4 ‘‘(C) PROHIBITION ON BENEFIT IN- 5 CREASES, ETC.—During a fiscal year in which 6 the 1974 UMWA Pension Plan is receiving 7 transfers under subparagraph (A), no amend- 8 ment of such plan which increases the liabilities 9 of the plan by reason of any increase in bene- 10 fits, any change in the accrual of benefits, or 11 any change in the rate at which benefits become 12 nonforfeitable under the plan may be adopted 13 unless the amendment is required as a condi- 14 tion of qualification under part I of subchapter 15 D of chapter 1 of the Internal Revenue Code of 16 1986. 17 ‘‘(D) ENHANCED ANNUAL REPORTING.— 18 ‘‘(i) IN GENERAL.—Not later than the 19 90th day of each plan year beginning after 20 the date of enactment of the Miners Pen- 21 sion Protection Act, the trustees of the 22 1974 UMWA Pension Plan shall file with 23 the Secretary of the Treasury or the Sec- 24 retary’s delegate and the Pension Benefit 25 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 4 •HR 935 IH Guaranty Corporation a report (including 1 appropriate documentation and actuarial 2 certifications from the plan actuary, as re- 3 quired by the Secretary of the Treasury or 4 the Secretary’s delegate) that contains— 5 ‘‘(I) whether the plan is in en- 6 dangered or critical status under sec- 7 tion 305 of the Employee Retirement 8 Income Security Act of 1974 and sec- 9 tion 432 of the Internal Revenue Code 10 of 1986 as of the first day of such 11 plan year; 12 ‘‘(II) the funded percentage (as 13 defined in section 432(j)(2) of such 14 Code) as of the first day of such plan 15 year, and the underlying actuarial 16 value of assets and liabilities taken 17 into account in determining such per- 18 centage; 19 ‘‘(III) the market value of the as- 20 sets of the plan as of the last day of 21 the plan year preceding such plan 22 year; 23 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 5 •HR 935 IH ‘‘(IV) the total value of all con- 1 tributions made during the plan year 2 preceding such plan year; 3 ‘‘(V) the total value of all bene- 4 fits paid during the plan year pre- 5 ceding such plan year; 6 ‘‘(VI) cash flow projections for 7 such plan year and either the 6 or 10 8 succeeding plan years, at the election 9 of the trustees, and the assumptions 10 relied upon in making such projec- 11 tions; 12 ‘‘(VII) funding standard account 13 projections for such plan year and the 14 9 succeeding plan years, and the as- 15 sumptions relied upon in making such 16 projections; 17 ‘‘(VIII) the total value of all in- 18 vestment gains or losses during the 19 plan year preceding such plan year; 20 ‘‘(IX) any significant reduction 21 in the number of active participants 22 during the plan year preceding such 23 plan year, and the reason for such re- 24 duction; 25 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 6 •HR 935 IH ‘‘(X) a list of employers that 1 withdrew from the plan in the plan 2 year preceding such plan year, and 3 the resulting reduction in contribu- 4 tions; 5 ‘‘(XI) a list of employers that 6 paid withdrawal liability to the plan 7 during the plan year preceding such 8 plan year and, for each employer, a 9 total assessment of the withdrawal li- 10 ability paid, the annual payment 11 amount, and the number of years re- 12 maining in the payment schedule with 13 respect to such withdrawal liability; 14 ‘‘(XII) any material changes to 15 benefits, accrual rates, or contribution 16 rates during the plan year preceding 17 such plan year; 18 ‘‘(XIII) any scheduled benefit in- 19 crease or decrease in the plan year 20 preceding such plan year having a 21 material effect on liabilities of the 22 plan; 23 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 7 •HR 935 IH ‘‘(XIV) details regarding any 1 funding improvement plan or rehabili- 2 tation plan and updates to such plan; 3 ‘‘(XV) the number of partici- 4 pants and beneficiaries during the 5 plan year preceding such plan year 6 who are active participants, the num- 7 ber of participants and beneficiaries in 8 pay status, and the number of termi- 9 nated vested participants and bene- 10 ficiaries; 11 ‘‘(XVI) the information contained 12 on the most recent annual funding no- 13 tice submitted by the plan under sec- 14 tion 101(f) of the Employee Retire- 15 ment Income Security Act of 1974; 16 ‘‘(XVII) the information con- 17 tained on the most recent Department 18 of Labor Form 5500 of the plan; and 19 ‘‘(XVIII) copies of the plan docu- 20 ment and amendments, other retire- 21 ment benefit or ancillary benefit plans 22 relating to the plan and contribution 23 obligations under such plans, a break- 24 down of administrative expenses of 25 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 8 •HR 935 IH the plan, participant census data and 1 distribution of benefits, the most re- 2 cent actuarial valuation report as of 3 the plan year, copies of collective bar- 4 gaining agreements, and financial re- 5 ports, and such other information as 6 the Secretary of the Treasury or the 7 Secretary’s delegate, in consultation 8 with the Secretary of Labor and the 9 Director of the Pension Benefit Guar- 10 anty Corporation, may require. 11 ‘‘(ii) ELECTRONIC SUBMISSION.—The 12 report required under clause (i) shall be 13 submitted electronically. 14 ‘‘(iii) INFORMATION SHARING.—The 15 Secretary of the Treasury or the Sec- 16 retary’s delegate shall share the informa- 17 tion in the report under clause (i) with the 18 Secretary of Labor. 19 ‘‘(iv) PENALTY.—Any failure to file 20 the report required under clause (i) on or 21 before the date described in such clause 22 shall be treated as a failure to file a report 23 required to be filed under section 6058(a) 24 of the Internal Revenue Code of 1986, ex- 25 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 9 •HR 935 IH cept that section 6652(e) of such Code 1 shall be applied with respect to any such 2 failure by substituting ‘$100’ for ‘$25’. 3 The preceding sentence shall not apply if 4 the Secretary of the Treasury or the Sec- 5 retary’s delegate determines that reason- 6 able diligence has been exercised by the 7 trustees of such plan in attempting to 8 timely file such report. 9 ‘‘(E) 1974 UMWA PENSION PLAN DE- 10 FINED.—For purposes of this paragraph, the 11 term ‘1974 UMWA Pension Plan’ has the 12 meaning given the term in section 9701(a)(3) 13 of the Internal Revenue Code of 1986, but 14 without regard to the limitation on participation 15 to individuals who retired in 1976 and there- 16 after.’’. 17 (b) EFFECTIVE DATES.— 18 (1) IN GENERAL.—The amendments made by 19 this section shall apply to fiscal years beginning 20 after September 30, 2016. 21 (2) REPORTING REQUIREMENTS.—Section 22 402(i)(4)(F) of the Surface Mining Control and Rec- 23 lamation Act of 1977 (30 U.S.C. 1232(i)(4)(F)), as 24 VerDate Sep 11 2014 04:49 Feb 12, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS 10 •HR 935 IH added by this section, shall apply to plan years be- 1 ginning after the date of the enactment of this Act. 2 SEC. 3. REDUCTION IN MINIMUM AGE FOR ALLOWABLE IN- 3 SERVICE DISTRIBUTIONS. 4 (a) IN GENERAL.—Section 401(a)(36) of the Internal 5 Revenue Code of 1986 is amended by striking ‘‘age 62’’ 6 and inserting ‘‘age 591⁄2’’. 7 (b) APPLICATION TO GOVERNMENTAL SECTION 8 457(b) PLANS.—Section 457(d)(1)(A)(i) of such Code is 9 amended by inserting ‘‘(in the case of a plan maintained 10 by an employer described in subsection (e)(1)(A), age 11 591⁄2)’’ before the comma at the end. 12 (c) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to plan years beginning after De- 14 cember 31, 2017. 15 Æ VerDate Sep 11 2014 02:01 Feb 13, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H935.IH H935 kjohnson on DSK79L0C42 with BILLS