Frequently Asked Questions
Who is eligible for the Deduction for Coal Industry Retiree Health Premiums?
Applies to 'last signatory operators' in the coal industry required to provide health benefits to retirees under the Coal Industry Retiree Health Benefit Act of 1992.
How does the Deduction for Coal Industry Retiree Health Premiums work?
Any premium required to be paid by a last signatory operator to the 1992 UMWA Benefit Plan is fully deductible as a business expense.
What law authorizes the Deduction for Coal Industry Retiree Health Premiums?
The Deduction for Coal Industry Retiree Health Premiums is authorized under IRC §9712 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §9712
Source: Internal Revenue Code, Title 26, United States Code
§ 9712. Establishment and coverage of 1992 UMWA Benefit Plan(a) Creation of plan(1) In generalAs soon as practicable after the enactment date, the settlors shall create a separate private plan which shall be known as the United Mine Workers of America 1992 Benefit Plan. For purposes of this title, the 1992 UMWA Benefit Plan shall be treated as an organization exempt from taxation under section 501(a). The settlors shall be responsible for designing the structure, administration and terms of the 1992 UMWA Benefit Plan, and for appointment and removal of the members of the board of trustees. The board of trustees shall initially consist of five members and shall thereafter be the number set by the settlors.
(2) Treatment of planThe 1992 UMWA Benefit Plan shall be—(A) a plan described in section 302(c)(5) of the Labor Management Relations Act, 1947 (29 U.S.C. 186(c)(5)),
(B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(1)), and
(C) a multiemployer plan within the meaning of section 3(37) of such Act (29 U.S.C. 1002(37)).
(3) Transfers under other Federal statutes(A) In generalThe 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 fundsAny amount transferred under subparagraph (A) for any fiscal year shall be used to provide the health benefits described in subsection (c) with 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 generalThe 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 section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232).
(B) Use of fundsAny 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)).
(b) Coverage requirement(1) In generalThe 1992 UMWA Benefit Plan shall only provide health benefits coverage to any eligible beneficiary who is not eligible for benefits under the Combined Fund and shall not provide such coverage to any other individual.
(2) Eligible beneficiaryFor purposes of this section, the term “eligible beneficiary” means an individual who—(A) but for the enactment of this chapter, would be eligible to receive benefits from the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, based upon age and service earned as of February 1, 1993; or
Showing first 3,000 characters of full section text.