Miners Protection Act: Important measure merits approval
Welcomed legislation introduced in Washington this week by lawmakers representing both West Virginia and Virginia would correctly ensure the promise of lifetime health care and pensions to retired miners and their families
The Miners Protection Act was introduced Tuesday by U.S. Sen. Joe Manchin, D-W.Va., U.S. Sen. Shelley Moore Capito , R-W.Va., U.S. Sen. Tim Kaine, D-Va., U.S. Sen. Mark Warner, D-Va., U.S. Sen. Bob Casey, D-Pa., and U.S. Sen. Sherrod Brown, D-Ohio. The legislation would specifically ensure that the federal government and coal operators honor their obligation of lifetime pensions and health benefits to retired miners and their families who are facing uncertainty as a result of the current financial crisis and corporate bankruptcies.
Retired miners are facing uncertainty because the United Mine Workers of America (UMWA) 1974 Pension Plan is severely underfunded, according to the six lawmakers. Unlike other public and private pension plans, the 1974 Pension Plan was well-managed and funded prior to the 2008 financial crisis also known as the Great Recession, which hit at a time when the plan had its highest payment obligations. This — coupled with the fact that 60 percent of the beneficiaries are “orphan” retirees whose employers are no longer in the coal business, and the fact that there are only 10,000 active workers for 120,000 retirees — has placed the plan on the road to insolvency, the six lawmakers are warning. If the plan becomes insolvent, the beneficiaries would face benefit cuts and the Pension Benefit Guaranty Corporation would assume billions of dollars in liabilities.
To address these issues, the Miners Protection Act would:
• Amend the Surface Mining Control and Reclamation Act to transfer funds in excess of the amounts needed to meet existing obligations under the Abandoned Mine Land (AML) fund to the UMWA 1974 Pension Plan to prevent its insolvency.
• Make certain retirees who lose health care benefits following the bankruptcy or insolvency of his or her employer eligible for the 1993 benefit plan. Under the proposed measure sought by the lawmakers, the assets of the Voluntary Employee Benefit Association (VEBA) created following the Patriot Coal bankruptcy would be transferred to the 1993 Benefit Plan to reduce transfers from the AML fund.
The Miners Protection Act is a necessary measure, and merits prompt congressional approval. Lawmakers do have a responsibility to ensure the protection of the hard-earned pensions and health benefits of coal miners. These are the same brave men and women who dedicated their lives to helping power our nation. Their hard-work has kept America strong over the years. These coal miners are now more than deserving of their promised benefits.
