Bipartisan American Miners Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2788 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 NOVEMBER 6, 2019 Mr. MANCHIN (for himself, Mrs. CAPITO, Mr. MCCONNELL, Mr. JONES, Mr. KAINE, Ms. DUCKWORTH, Mr. BROWN, Mr. CASEY, Mr. DURBIN, Mr. WARNER, Mr. PORTMAN, Ms. SINEMA, and Mr. VAN HOLLEN) 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 ‘‘Bipartisan American 4 Miners Act of 2019’’. 5 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 2 •S 2788 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 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 3 •S 2788 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 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 4 •S 2788 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) TREATMENT OF TRANSFERS FOR 12 PURPOSES OF WITHDRAWAL LIABILITY UNDER 13 ERISA.—The amount of any transfer made 14 under subparagraph (A) (and any earnings at- 15 tributable thereto) shall be disregarded in deter- 16 mining the unfunded vested benefits of the 17 1974 UMWA Pension Plan and the allocation 18 of such unfunded vested benefits to an employer 19 for purposes of determining the employer’s 20 withdrawal liability under section 4201 of the 21 Employee Retirement Income Security Act of 22 1974. 23 ‘‘(F) REQUIREMENT TO MAINTAIN CON- 24 TRIBUTION RATE.—A transfer under subpara- 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 5 •S 2788 IS graph (A) shall not be made for a fiscal year 1 unless the persons that are obligated to con- 2 tribute to the 1974 UMWA Pension Plan on 3 the date of the transfer are obligated to make 4 the contributions at rates that are no less than 5 those in effect on the date which is 30 days be- 6 fore the date of enactment of the Bipartisan 7 American Miners Act of 2019. 8 ‘‘(G) ENHANCED ANNUAL REPORTING.— 9 ‘‘(i) IN GENERAL.—Not later than the 10 90th day of each plan year beginning after 11 the date of enactment of the Bipartisan 12 American Miners Act of 2019, the trustees 13 of the 1974 UMWA Pension Plan shall file 14 with the Secretary of the Treasury or the 15 Secretary’s delegate and the Pension Ben- 16 efit Guaranty Corporation a report (includ- 17 ing appropriate documentation and actu- 18 arial certifications from the plan actuary, 19 as required by the Secretary of the Treas- 20 ury or the Secretary’s delegate) that con- 21 tains— 22 ‘‘(I) whether the plan is in en- 23 dangered or critical status under sec- 24 tion 305 of the Employee Retirement 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 6 •S 2788 IS Income Security Act of 1974 and sec- 1 tion 432 of the Internal Revenue Code 2 of 1986 as of the first day of such 3 plan year; 4 ‘‘(II) the funded percentage (as 5 defined in section 432(j)(2) of such 6 Code) as of the first day of such plan 7 year, and the underlying actuarial 8 value of assets and liabilities taken 9 into account in determining such per- 10 centage; 11 ‘‘(III) the market value of the as- 12 sets of the plan as of the last day of 13 the plan year preceding such plan 14 year; 15 ‘‘(IV) the total value of all con- 16 tributions made during the plan year 17 preceding such plan year; 18 ‘‘(V) the total value of all bene- 19 fits paid during the plan year pre- 20 ceding such plan year; 21 ‘‘(VI) cash flow projections for 22 such plan year and either the 6 or 10 23 succeeding plan years, at the election 24 of the trustees, and the assumptions 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 7 •S 2788 IS relied upon in making such projec- 1 tions; 2 ‘‘(VII) funding standard account 3 projections for such plan year and the 4 9 succeeding plan years, and the as- 5 sumptions relied upon in making such 6 projections; 7 ‘‘(VIII) the total value of all in- 8 vestment gains or losses during the 9 plan year preceding such plan year; 10 ‘‘(IX) any significant reduction 11 in the number of active participants 12 during the plan year preceding such 13 plan year, and the reason for such re- 14 duction; 15 ‘‘(X) a list of employers that 16 withdrew from the plan in the plan 17 year preceding such plan year, and 18 the resulting reduction in contribu- 19 tions; 20 ‘‘(XI) a list of employers that 21 paid withdrawal liability to the plan 22 during the plan year preceding such 23 plan year and, for each employer, a 24 total assessment of the withdrawal li- 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 8 •S 2788 IS ability paid, the annual payment 1 amount, and the number of years re- 2 maining in the payment schedule with 3 respect to such withdrawal liability; 4 ‘‘(XII) any material changes to 5 benefits, accrual rates, or contribution 6 rates during the plan year preceding 7 such plan year; 8 ‘‘(XIII) any scheduled benefit in- 9 crease or decrease in the plan year 10 preceding such plan year having a 11 material effect on liabilities of the 12 plan; 13 ‘‘(XIV) details regarding any 14 funding improvement plan or rehabili- 15 tation plan and updates to such plan; 16 ‘‘(XV) the number of partici- 17 pants and beneficiaries during the 18 plan year preceding such plan year 19 who are active participants, the num- 20 ber of participants and beneficiaries in 21 pay status, and the number of termi- 22 nated vested participants and bene- 23 ficiaries; 24 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 9 •S 2788 IS ‘‘(XVI) the information contained 1 on the most recent annual funding no- 2 tice submitted by the plan under sec- 3 tion 101(f) of the Employee Retire- 4 ment Income Security Act of 1974; 5 ‘‘(XVII) the information con- 6 tained on the most recent Department 7 of Labor Form 5500 of the plan; and 8 ‘‘(XVIII) copies of the plan docu- 9 ment and amendments, other retire- 10 ment benefit or ancillary benefit plans 11 relating to the plan and contribution 12 obligations under such plans, a break- 13 down of administrative expenses of 14 the plan, participant census data and 15 distribution of benefits, the most re- 16 cent actuarial valuation report as of 17 the plan year, copies of collective bar- 18 gaining agreements, and financial re- 19 ports, and such other information as 20 the Secretary of the Treasury or the 21 Secretary’s delegate, in consultation 22 with the Secretary of Labor and the 23 Director of the Pension Benefit Guar- 24 anty Corporation, may require. 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 10 •S 2788 IS ‘‘(ii) ELECTRONIC SUBMISSION.—The 1 report required under clause (i) shall be 2 submitted electronically. 3 ‘‘(iii) INFORMATION SHARING.—The 4 Secretary of the Treasury or the Sec- 5 retary’s delegate shall share the informa- 6 tion in the report under clause (i) with the 7 Secretary of Labor. 8 ‘‘(iv) PENALTY.—Any failure to file 9 the report required under clause (i) on or 10 before the date described in such clause 11 shall be treated as a failure to file a report 12 required to be filed under section 6058(a) 13 of the Internal Revenue Code of 1986, ex- 14 cept that section 6652(e) of such Code 15 shall be applied with respect to any such 16 failure by substituting ‘$100’ for ‘$25’. 17 The preceding sentence shall not apply if 18 the Secretary of the Treasury or the Sec- 19 retary’s delegate determines that reason- 20 able diligence has been exercised by the 21 trustees of such plan in attempting to 22 timely file such report. 23 ‘‘(H) 1974 UMWA PENSION PLAN DE- 24 FINED.—For purposes of this paragraph, the 25 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 11 •S 2788 IS term ‘1974 UMWA Pension Plan’ has the 1 meaning given the term in section 9701(a)(3) 2 of the Internal Revenue Code of 1986, but 3 without regard to the limitation on participation 4 to individuals who retired in 1976 and there- 5 after.’’. 6 (b) EFFECTIVE DATES.— 7 (1) IN GENERAL.—The amendments made by 8 this section shall apply to fiscal years beginning 9 after September 30, 2016. 10 (2) REPORTING REQUIREMENTS.—Section 11 402(i)(4)(G) of the Surface Mining Control and Rec- 12 lamation Act of 1977 (30 U.S.C. 1232(i)(4)(G)), as 13 added by this section, shall apply to plan years be- 14 ginning after the date of the enactment of this Act. 15 SEC. 3. INCLUSION IN MULTIEMPLOYER HEALTH BENEFIT 16 PLAN. 17 Section 402(h)(2)(C) of the Surface Mining Control 18 and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)) 19 is amended— 20 (1) by striking ‘‘the Health Benefits for Miners 21 Act of 2017’’ both places it appears in clause (ii) 22 and inserting ‘‘the Bipartisan American Miners Act 23 of 2019’’; 24 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 12 •S 2788 IS (2) by striking ‘‘, would be denied or reduced 1 as a result of a bankruptcy proceeding commenced 2 in 2012 or 2015’’ in clause (ii)(II) and inserting ‘‘or 3 a related coal wage agreement, would be denied or 4 reduced as a result of a bankruptcy proceeding com- 5 menced in 2012, 2015, 2018, or 2019’’; 6 (3) by striking ‘‘and’’ at the end of clause 7 (ii)(I), by striking the period at the end of clause 8 (ii)(II) and inserting ‘‘; and’’, and by inserting after 9 clause (ii)(II) the following new subclause: 10 ‘‘(III) the cost of administering 11 the resolution of disputes process ad- 12 ministered (as of the date of the en- 13 actment of the Bipartisan American 14 Miners Act of 2019) by the Trustees 15 of the Plan.’’, 16 (4) by striking ‘‘January 1, 2017’’ in clause (ii) 17 and inserting ‘‘January 1, 2019’’; and 18 (5) by adding at the end the following new 19 clause: 20 ‘‘(vi) RELATED COAL WAGE AGREE- 21 MENT.—For purposes of clause (ii), the 22 term ‘related coal wage agreement’ means 23 an agreement between the United Mine 24 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 13 •S 2788 IS Workers of America and an employer in 1 the bituminous coal industry that— 2 ‘‘(I) is a signatory operator; or 3 ‘‘(II) is or was a debtor in a 4 bankruptcy proceeding that was con- 5 solidated, administratively or other- 6 wise, with the bankruptcy proceeding 7 of a signatory operator or a related 8 person to a signatory operator (as 9 those terms are defined in section 10 9701(c) of the Internal Revenue Code 11 of 1986).’’. 12 SEC. 4. REDUCTION IN MINIMUM AGE FOR ALLOWABLE IN- 13 SERVICE DISTRIBUTIONS. 14 (a) IN GENERAL.—Section 401(a)(36) of the Internal 15 Revenue Code of 1986 is amended by striking ‘‘age 62’’ 16 and inserting ‘‘age 591⁄2’’. 17 (b) APPLICATION TO GOVERNMENTAL SECTION 18 457(b) PLANS.—Clause (i) of section 457(d)(1)(A) of the 19 Internal Revenue Code of 1986 is amended by inserting 20 ‘‘(in the case of a plan maintained by an employer de- 21 scribed in subsection (e)(1)(A), age 591⁄2)’’ before the 22 comma at the end. 23 VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2788.IS S2788 14 •S 2788 IS (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to plan years beginning after De- 2 cember 31, 2019. 3 Æ VerDate Sep 11 2014 20:40 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6301 E:\BILLS\S2788.IS S2788