Internal Revenue Code:Sec. 9706. Assignment of eligible beneficiaries
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART II - FINANCING
Statute
Sec. 9706. Assignment of eligible beneficiaries
(a) In general
For purposes of this chapter, the Commissioner of Social Security
shall, before October 1, 1993, assign each coal industry retiree
who is an eligible beneficiary to a signatory operator which (or
any related person with respect to which) remains 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 employ the coal
industry retiree in the coal industry for at least 2 years.
(2) Second, if the retiree is not assigned under paragraph (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 employ the coal
industry retiree in the coal industry.
(3) Third, if the retiree is not assigned under paragraph (1)
or (2), to the signatory operator which employed the coal
industry retiree in the coal industry for a longer period of time
than any other signatory operator prior to the effective date of
the 1978 coal wage agreement.
(b) Rules relating to employment and reassignment upon purchase
For purposes of subsection (a) -
(1) Aggregation rules
(A) Related person
Any employment of a coal industry retiree in the coal
industry by a signatory operator shall be treated as employment
by any related persons to such operator.
(B) Certain employment disregarded
Employment with -
(i) a person which is (and all related persons with respect
to which are) no longer in business, or
(ii) a person during a period during which such person was
not a signatory to a coal wage agreement,
shall not be taken into account.
(2) Reassignment upon purchase
If a person becomes a successor of an assigned operator after
the enactment date, the assigned operator may transfer the
assignment of an eligible beneficiary under subsection (a) to
such successor, and such successor shall be treated as the
assigned operator with respect to such eligible beneficiary for
purposes of this chapter. Notwithstanding the preceding
sentence, the assigned operator transferring such assignment (and
any related person) shall remain the guarantor of the benefits
provided to the eligible beneficiary under this chapter. An
assigned operator shall notify the trustees of the Combined Fund
of any transfer described in this paragraph.
(c) Identification of eligible beneficiaries
The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall,
by the later of October 1, 1992, or the twentieth day after the
enactment date, provide to the Commissioner of Social Security a
list of the names and social security account numbers of each
eligible beneficiary, including each deceased eligible beneficiary
if any other individual is an eligible beneficiary by reason of a
relationship to such deceased eligible beneficiary. In addition,
the plans shall provide, where ascertainable from plan records, the
names of all persons described in subsection (a) with respect to
any eligible beneficiary or deceased eligible beneficiary.
(d) Cooperation by other agencies and persons
(1) Cooperation
The head of any department, agency, or instrumentality of the
United States shall cooperate fully and promptly with the
Commissioner of Social Security in providing information which
will enable the Commissioner to carry out his responsibilities
under this section.
(2) Providing of information
(A) In general
Notwithstanding any other provision of law, including section
6103, the head of any other agency, department, or
instrumentality shall, upon receiving a written request from
the Commissioner of Social Security in connection with this
section, cause a search to be made of the files and records
maintained by such agency, department, or instrumentality with
a view to determining whether the information requested is
contained in such files or records. The Commissioner shall be
advised whether the search disclosed the information requested,
and, if so, such information shall be promptly transmitted to
the Commissioner, except that if the disclosure of any
requested information would contravene national policy or
security interests of the United States, or the confidentiality
of census data, the information shall not be transmitted and
the Commissioner shall be so advised.
(B) Limitation
Any information provided under subparagraph (A) shall be
limited to information necessary for the Commissioner to carry
out his duties under this section.
(3) Trustees
The trustees of the Combined Fund, the 1950 UMWA Benefit Plan,
the 1974 UMWA Benefit Plan, the 1950 UMWA Pension Plan, and the
1974 UMWA Pension Plan shall fully and promptly cooperate with
the Commissioner in furnishing, or assisting the Commissioner to
obtain, any information the Commissioner needs to carry out the
Commissioner's responsibilities under this section.
(e) Notice by Commissioner
(1) Notice to Fund
The Commissioner of Social Security shall advise the trustees
of the Combined Fund of the name of each person identified under
this section as an assigned operator, and the names and social
security account numbers of eligible beneficiaries with respect
to whom he is identified.
(2) Other notice
The Commissioner of Social Security shall notify each assigned
operator of the names and social security account numbers of
eligible beneficiaries who have been assigned to such person
under this section and a brief summary of the facts related to
the basis for such assignments.
(f) Reconsideration by Commissioner
(1) In general
Any assigned operator receiving a notice under subsection
(e)(2) with respect to an eligible beneficiary may, within 30
days of receipt of such notice, request from the Commissioner of
Social Security detailed information as to the work history of
the beneficiary and the basis of the assignment.
(2) Review
An assigned operator may, within 30 days of receipt of the
information under paragraph (1), request review of the
assignment. The Commissioner of Social Security shall conduct
such review if the Commissioner finds the operator provided
evidence with the request constituting a prima facie case of
error.
(3) Results of review
(A) Error
If the Commissioner of Social Security determines under a
review under paragraph (2) that an assignment was in error -
(i) the Commissioner shall notify the assigned operator and
the trustees of the Combined Fund and the trustees shall
reduce the premiums of the operator under section 9704 by (or
if there are no such premiums, repay) all premiums paid under
section 9704 with respect to the eligible beneficiary, and
(ii) the Commissioner shall review the beneficiary's record
for reassignment under subsection (a).
(B) No error
If the Commissioner of Social Security determines under a
review conducted under paragraph (2) that no error occurred,
the Commissioner shall notify the assigned operator.
(4) Determinations
Any determination by the Commissioner of Social Security under
paragraph (2) or (3) shall be final.
(5) Payment pending review
An assigned operator shall pay the premiums under section 9704
pending review by the Commissioner of Social Security or by a
court under this subsection.
(6) Private actions
Nothing in this section shall preclude the right of any person
to bring a separate civil action against another person for
responsibility for assigned premiums, notwithstanding any prior
decision by the Commissioner.
(g) Confidentiality of information
Any person to which information is provided by the Commissioner
of Social Security under this section shall not disclose such
information except in any proceedings related to this section. Any
civil or criminal penalty which is applicable to an unauthorized
disclosure under section 6103 shall apply to any unauthorized
disclosure under this section.
(h) Assignments as of October 1, 2007.--
(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
(A) revoke all assignments to persons other than
1988 agreement operators for purposes of assessing
premiums for plan years beginning on and after October
1, 2007; and
(B) make no further assignments to persons other
than 1988 agreement operators, except that no individual
who becomes an unassigned beneficiary by reason of
subparagraph (A) may be assigned to a 1988 agreement
operator.
(2) Reassignment upon purchase.--This subsection shall not
be construed to prohibit the reassignment under subsection
(b)(2) of an eligible beneficiary.
(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each of
the fiscal years beginning on October 1, 2007, 2008, and 2009,
each person other than a 1988 agreement operator shall pay to
the Combined Fund the following percentage of the amount of
annual premiums that such person would otherwise be required to
pay under section 9704(a), determined on the basis of
assignments in effect without regard to the revocation of
assignments under paragraph (1)(A):
(A) For the fiscal year beginning on October 1,
2007, 55 percent.
(B) For the fiscal year beginning on October 1,
2008, 40 percent.
(C) For the fiscal year beginning on October 1,
2009, 15 percent.
Sources
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3047; amended Pub. L. 103-296, title I, Sec.
108(h)(9)(B), Aug. 15, 1994, 108 Stat. 1487.)
Miscellaneous
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Section 212(a)(3) Assignments and reassignment.--Section 9706 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 9706.>> (relating
to assignment of eligible beneficiaries) is amended by adding at
the end the following:
``(h) Assignments as of October 1, 2007.--
``(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
``(A) revoke all assignments to persons other than
1988 agreement operators for purposes of assessing
premiums for plan years beginning on and after October
1, 2007; and
``(B) make no further assignments to persons other
than 1988 agreement operators, except that no individual
who becomes an unassigned beneficiary by reason of
subparagraph (A) may be assigned to a 1988 agreement
operator.
``(2) Reassignment upon purchase.--This subsection shall not
be construed to prohibit the reassignment under subsection
(b)(2) of an eligible beneficiary.
``(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each of
the fiscal years beginning on October 1, 2007, 2008, and 2009,
each person other than a 1988 agreement operator shall pay to
the Combined Fund the following percentage of the amount of
annual premiums that such person would otherwise be required to
pay under section 9704(a), determined on the basis of
assignments in effect without regard to the revocation of
assignments under paragraph (1)(A):
``(A) For the fiscal year beginning on October 1,
2007, 55 percent.
``(B) For the fiscal year beginning on October 1,
2008, 40 percent.
``(C) For the fiscal year beginning on October 1,
2009, 15 percent.''.
1994 - Subsecs. (a), (c) to (g). Pub. L. 103-296 substituted
''Commissioner of Social Security'' for ''Secretary of Health and
Human Services'', ''Commissioner'' for ''Secretary'', and
''Commissioner's'' for ''Secretary's'', wherever appearing in text.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section
110(a) of Pub. L. 103-296, set out as a note under section 401 of
Title 42, The Public Health and Welfare.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9701, 9702, 9704 of this
title.
