TRANSFERS TO FUNDS; PREMIUM RELIEF.

SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF.(a) Combined Fund.—(1) Federal transfers.—Section 9705(b) of the Internal Revenue Code of 1986 (relating to transfers from Abandoned Mine Reclamation Fund) is amended—(A) in paragraph (1), by striking “section 402(h)” and inserting “subsections (h) and (i) of section 402”;120 STAT. 3024(B) by striking paragraph (2) and inserting the following new paragraph:“(2) Use of funds.—Any amount transferred under paragraph (1) for any fiscal year shall be used to pay benefits and administrative costs of beneficiaries of the Combined Fund or for such other purposes as are specifically provided in the Acts described in paragraph (1).”; and(C) by striking “From Abandoned Mine Reclamation Fund” in the heading thereof.(2) Modifications of premiums to reflect federal transfers.—(A) Elimination of unassigned beneficiaries pre- mium.—Section 9704(d) of such Code (establishing unassigned beneficiaries premium) is amended to read as follows:“(d) Unassigned Beneficiaries Premium.—“(1) Plan years ending on or before september 30, 2006.—For plan years ending on or before September 30, 2006, the unassigned beneficiaries premium for any assigned operator shall be equal to the applicable percentage of the product of the per beneficiary premium for the plan year multiplied by the number of eligible beneficiaries who are not assigned under section 9706 to any person for such plan year.“(2) Plan years beginning on or after october 1, 2006.—“(A) In general.—For plan years beginning on or after October 1, 2006, subject to subparagraph (B), there shall be no unassigned beneficiaries premium, and benefit costs with respect to eligible beneficiaries who are not assigned under section 9706 to any person for any such plan year shall be paid from amounts transferred under section 9705(b).“(B) Inadequate transfers.—If, for any plan year beginning on or after October 1, 2006, the amounts transferred under section 9705(b) are less than the amounts required to be transferred to the Combined Fund under subsection (h)(2)(A) or (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)), then the unassigned beneficiaries premium for any assigned operator shall be equal to the operator’s applicable percentage of the amount required to be so transferred which was not so transferred.”.(B) Premium accounts.—(i) Crediting of accounts.—Section 9704(e)(1) of such Code (relating to premium accounts; adjustments) is amended by inserting “and amounts transferred under section 9705(b)” after “premiums received”.(ii) Surpluses attributable to public funding.—Section 9704(e)(3)(A) of such Code is amended by adding at the end the following new sentence: “Amounts credited to an account from amounts transferred under section 9705(b) shall not be taken into account in determining whether there is a surplus in the account for purposes of this paragraph.”.(C) Applicable percentage.—Section 9704(f)(2) of such Code (relating to annual adjustments) is amended by adding at the end the following new subparagraph:120 STAT. 3025 “(C) In the case of plan years beginning on or after October 1, 2007, the total number of assigned eligible beneficiaries shall be reduced by the eligible beneficiaries whose assignments have been revoked under section 9706(h).”.(3) Assignments and reassignment.—Section 9706 of the Internal Revenue Code of 1986 (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.”.(4) Effective date.—The amendments made by this subsection shall apply to plan years of the Combined Fund beginning after September 30, 2006.(b) 1992 UMWA Benefit and Other Plans.—(1) Transfers to plans.—Section 9712(a) of the Internal Revenue Code of 1986 (relating to the establishment and coverage of the 1992 UMWA Benefit Plan) is amended by adding at the end the following:“(3) Transfers under other federal statutes.—“(A) In general.—The 1992 UMWA Benefit Plan shall include any amount transferred to the plan under subsections (h) and (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232).“(B) Use of funds.—Any amount transferred under subparagraph (A) for any fiscal year shall be used to provide the health benefits described in subsection (c) with 120 STAT. 3026 respect to any beneficiary for whom no monthly per beneficiary premium is paid pursuant to paragraph (1)(A) or (3) of subsection (d).“(4) Special rule for 1993 plan.—“(A) In general.—The plan described in section 402(h)(2)(C) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any amount transferred to the plan under subsections (h) and (i) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232).“(B) Use of funds.—Any amount transferred under subparagraph (A) for any fiscal year shall be used to provide the health benefits described in section 402(h)(2)(C)(i) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)(i)) to individuals described in section 402(h)(2)(C) of such Act (30 U.S.C. 1232(h)(2)(C)).”.(2) Premium adjustments.—(A) In general.—Section 9712(d)(1) of such Code (relating to guarantee of benefits) is amended to read as follows:“(1) In general.—All 1988 last signatory operators shall be responsible for financing the benefits described in subsection (c) by meeting the following requirements in accordance with the contribution requirements established in the 1992 UMWA Benefit Plan:“(A) The payment of a monthly per beneficiary premium by each 1988 last signatory operator for each eligible beneficiary of such operator who is described in subsection (b)(2) and who is receiving benefits under the 1992 UMWA Benefit Plan.“(B) The provision of a security (in the form of a bond, letter of credit, or cash escrow) in an amount equal to a portion of the projected future cost to the 1992 UMWA Benefit Plan of providing health benefits for eligible and potentially eligible beneficiaries attributable to the 1988 last signatory operator.“(C) If the amounts transferred under subsection (a)(3) are less than the amounts required to be transferred to the 1992 UMWA Benefit Plan under subsections (h) and (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232), the payment of an additional backstop premium by each 1988 last signatory operator which is equal to such operator’s share of the amounts required to be so transferred but which were not so transferred, determined on the basis of the number of eligible and potentially eligible beneficiaries attributable to the operator.”.(B) Conforming amendments.—Section 9712(d) of such Code is amended—(i) in paragraph (2)(B), by striking “prefunding” and inserting “backstop”, and(ii) in paragraph (3), by striking “paragraph (1)(B)” and inserting “paragraph (1)(A)”.(C) Effective date.—The amendments made by this paragraph shall apply to fiscal years beginning on or after October 1, 2010.120 STAT. 3027