26 USC 9711 - Continued obligations of individual employer plans

U.S Code last checked for updates: May 17, 2024

§ 9711.

Continued obligations of individual employer plans

(a)

Coverage of current recipients

(b)

Coverage of eligible recipients

(1)

In general

(2)

Coverage

(c)

Joint and several liability of related persons

(1)

In general

(2)

Liability limited if security provided

If—

(A)

security meeting the requirements of paragraph (3) is provided by or on behalf of—

(i)

any last signatory operator which is an assigned operator described in section 9704(j)(2), or

(ii)

any related person to any last signatory operator described in clause (i), and

(B)

the common parent of the controlled group of corporations described in section 9704(j)(2)(B) is jointly and severally liable for the provision of health care under this section which, but for this paragraph, would be required to be provided by the last signatory operator or related person,

then, as of the date the security is provided, such common parent (and no other person) shall be liable for the provision of health care under this section which the last signatory operator or related person would otherwise be required to provide. Security may be provided under this paragraph without regard to whether a payment was made under section 9704(j).

(3)

Security

Security meets the requirements of this paragraph if—

(A)

the security—

(i)

is in the form of a bond, letter of credit, or cash escrow,

(ii)

is provided to the trustees of the 1992 UMWA Benefit Plan solely for the purpose of paying premiums for beneficiaries who would be described in section 9712(b)(2)(B) if the requirements of this section were not met by the last signatory operator, and

(iii)

is in an amount equal to 1 year of liability of the last signatory operator under this section, determined by using the average cost of such operator’s liability during the prior 3 calendar years;

(B)

the security is in addition to any other security required under any other provision of this title; and

(C)

the security remains in place for 5 years.

(4)

Refunds of security

The remaining amount of any security provided under this subsection (and earnings thereon) shall be refunded to the last signatory operator as of the earlier of—

(A)

the termination of the obligations of the last signatory operator under this section, or

(B)

the end of the 5-year period described in paragraph (3)(C).

(d)

Managed care and cost containment

(e)

Treatment of noncovered employees

(f)

Eligible beneficiary

(g)

Rules applicable to this part and part II

For purposes of this part and part II—

(1)

Successor

(2)

Reassignment upon purchase

(Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3051; amended Pub. L. 109–432, div. C, title II, § 211(b), Dec. 20, 2006, 120 Stat. 3022; Pub. L. 115–141, div. U, title IV, § 401(a)(347), Mar. 23, 2018, 132 Stat. 1201.)

cite as: 26 USC 9711