Miners Pension Protection Act

II 116TH CONGRESS 1ST SESSION S. 671 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 MARCH 6, 2019 Mrs. CAPITO (for herself and Mr. PORTMAN) 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 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 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 2 •S 671 IS 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) is amended— 4 (1) in paragraph (3)(A), by striking 5 ‘‘$490,000,000’’ and inserting ‘‘$750,000,000’’; 6 (2) by redesignating paragraph (4) as para- 7 graph (5); and 8 (3) by inserting after paragraph (3) the fol- 9 lowing: 10 ‘‘(4) ADDITIONAL AMOUNTS.— 11 ‘‘(A) CALCULATION.—If the dollar limita- 12 tion specified in paragraph (3)(A) exceeds the 13 aggregate amount required to be transferred 14 under paragraphs (1) and (2) for a fiscal year, 15 the Secretary of the Treasury shall transfer an 16 additional amount equal to the difference be- 17 tween such dollar limitation and such aggregate 18 amount to the trustees of the 1974 UMWA 19 Pension Plan to pay benefits required under 20 that plan. 21 ‘‘(B) CESSATION OF TRANSFERS.—The 22 transfers described in subparagraph (A) shall 23 cease as of the first fiscal year beginning after 24 the first plan year for which the funded per- 25 centage (as defined in section 432(j)(2) of the 26 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 3 •S 671 IS Internal Revenue Code of 1986) of the 1974 1 UMWA Pension Plan is at least 100 percent. 2 ‘‘(C) PROHIBITION ON BENEFIT IN- 3 CREASES, ETC.—During a fiscal year in which 4 the 1974 UMWA Pension Plan is receiving 5 transfers under subparagraph (A), no amend- 6 ment of such plan which increases the liabilities 7 of the plan by reason of any increase in bene- 8 fits, any change in the accrual of benefits, or 9 any change in the rate at which benefits become 10 nonforfeitable under the plan may be adopted 11 unless the amendment is required as a condi- 12 tion of qualification under part I of subchapter 13 D of chapter 1 of the Internal Revenue Code of 14 1986. 15 ‘‘(D) CRITICAL STATUS TO BE MAIN- 16 TAINED.—Until such time as the 1974 UMWA 17 Pension Plan ceases to be eligible for the trans- 18 fers described in subparagraph (A)— 19 ‘‘(i) the Plan shall be treated as if it 20 were in critical status for purposes of sec- 21 tions 412(b)(3), 432(e)(3), and 22 4971(g)(1)(A) of the Internal Revenue 23 Code of 1986 and sections 302(b)(3) and 24 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 4 •S 671 IS 305(e)(3) of the Employee Retirement In- 1 come Security Act; 2 ‘‘(ii) the Plan shall maintain and com- 3 ply with its rehabilitation plan under sec- 4 tion 432(e) of such Code and section 5 305(e) of such Act, including any updates 6 thereto; and 7 ‘‘(iii) the provisions of subsections (c) 8 and (d) of section 432 of such Code and 9 subsections (c) and (d) of section 305 of 10 such Act shall not apply. 11 ‘‘(E) REQUIREMENT TO MAINTAIN CON- 12 TRIBUTION RATE.—No transfer under subpara- 13 graph (A) shall be made for a fiscal year unless 14 the persons that are obligated to contribute to 15 the 1974 UMWA Pension Plan as of the date 16 of the transfer are obligated to make such con- 17 tributions at rates that are no less than those 18 in effect on the date which is 30 days before 19 the date of enactment of the Miners Pension 20 Protection Act. 21 ‘‘(F) ENHANCED ANNUAL REPORTING.— 22 ‘‘(i) IN GENERAL.—Not later than the 23 90th day of each plan year beginning after 24 the date of enactment of the Miners Pen- 25 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 5 •S 671 IS sion Protection Act, the trustees of the 1 1974 UMWA Pension Plan shall file with 2 the Secretary of the Treasury or the Sec- 3 retary’s delegate and the Pension Benefit 4 Guaranty Corporation a report (including 5 appropriate documentation and actuarial 6 certifications from the plan actuary, as re- 7 quired by the Secretary of the Treasury or 8 the Secretary’s delegate) that contains— 9 ‘‘(I) whether the plan is in en- 10 dangered or critical status under sec- 11 tion 305 of the Employee Retirement 12 Income Security Act of 1974 and sec- 13 tion 432 of the Internal Revenue Code 14 of 1986 as of the first day of such 15 plan year; 16 ‘‘(II) the funded percentage (as 17 defined in section 432(j)(2) of such 18 Code) as of the first day of such plan 19 year, and the underlying actuarial 20 value of assets and liabilities taken 21 into account in determining such per- 22 centage; 23 ‘‘(III) the market value of the as- 24 sets of the plan as of the last day of 25 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 6 •S 671 IS the plan year preceding such plan 1 year; 2 ‘‘(IV) the total value of all con- 3 tributions made during the plan year 4 preceding such plan year; 5 ‘‘(V) the total value of all bene- 6 fits paid during the plan year pre- 7 ceding such plan year; 8 ‘‘(VI) cash flow projections for 9 such plan year and either the 6 or 10 10 succeeding plan years, at the election 11 of the trustees, and the assumptions 12 relied upon in making such projec- 13 tions; 14 ‘‘(VII) funding standard account 15 projections for such plan year and the 16 9 succeeding plan years, and the as- 17 sumptions relied upon in making such 18 projections; 19 ‘‘(VIII) the total value of all in- 20 vestment gains or losses during the 21 plan year preceding such plan year; 22 ‘‘(IX) any significant reduction 23 in the number of active participants 24 during the plan year preceding such 25 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 7 •S 671 IS plan year, and the reason for such re- 1 duction; 2 ‘‘(X) a list of employers that 3 withdrew from the plan in the plan 4 year preceding such plan year, and 5 the resulting reduction in contribu- 6 tions; 7 ‘‘(XI) a list of employers that 8 paid withdrawal liability to the plan 9 during the plan year preceding such 10 plan year and, for each employer, a 11 total assessment of the withdrawal li- 12 ability paid, the annual payment 13 amount, and the number of years re- 14 maining in the payment schedule with 15 respect to such withdrawal liability; 16 ‘‘(XII) any material changes to 17 benefits, accrual rates, or contribution 18 rates during the plan year preceding 19 such plan year; 20 ‘‘(XIII) any scheduled benefit in- 21 crease or decrease in the plan year 22 preceding such plan year having a 23 material effect on liabilities of the 24 plan; 25 VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 8 •S 671 IS ‘‘(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 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 9 •S 671 IS 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 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 10 •S 671 IS 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 ‘‘(G) 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 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS 11 •S 671 IS 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.—Clause (i) of section 457(d)(1)(A) of the 9 Internal Revenue Code of 1986 is amended by inserting 10 ‘‘(in the case of a plan maintained by an employer de- 11 scribed in subsection (e)(1)(A), age 591⁄2)’’ before the 12 comma at the end. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to plan years beginning after De- 15 cember 31, 2017. 16 Æ VerDate Sep 11 2014 05:00 Mar 15, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S671.IS S671 kjohnson on DSK79L0C42 with BILLS