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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Multi-employer
Pension and Benefit Plans
The Coal Industry Retiree Health Benefit Act of 1992
(“Benefit Act”) provides for the funding of medical
and death benefits for certain retired members of the United
Mine Workers of America (“UMWA”) through premiums to
be paid by assigned operators (former employers), transfers in
1993 and 1994 from an overfunded pension trust established for
the benefit of retired UMWA members, and transfers from the
Abandoned Mine Lands Fund (funded by a federal tax on coal
production) commencing in 1995. The Company was a party to a
lawsuit against the UMWA combined benefit fund associated with
the Central Appalachia operations sold in the fourth quarter of
2005. The lawsuit contested premium calculations that involved
the assignment of retiree benefits by the Social Security
Administration to the signatory companies. During the year ended
December 31, 2007, the litigation was resolved in favor of
the signatory companies to the combined benefit fund and the
Company recognized income of $3.8 million, of which
$3.4 million is included as a reduction in cost of coal
sales and $0.4 million is included in interest income in
the accompanying consolidated statements of income.
Table of Contents
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Multi-employer
Pension and Benefit Plans
The Coal Industry Retiree Health Benefit Act of 1992
(“Benefit Act”) provides for the funding of medical
and death benefits for certain retired members of the United
Mine Workers of America (“UMWA”) through premiums to
be paid by assigned operators (former employers), transfers in
1993 and 1994 from an overfunded pension trust established for
the benefit of retired UMWA members, and transfers from the
Abandoned Mine Lands Fund (funded by a federal tax on coal
production) commencing in 1995. The Company was a party to a
lawsuit against the UMWA combined benefit fund associated with
the Central Appalachia operations sold in the fourth quarter of
2005. The lawsuit contested premium calculations that involved
the assignment of retiree benefits by the Social Security
Administration to the signatory companies. During the year ended
December 31, 2007, the litigation was resolved in favor of
the signatory companies to the combined benefit fund and the
Company recognized income of $3.8 million, of which
$3.4 million is included as a reduction in cost of coal
sales and $0.4 million is included in interest income in
the accompanying consolidated statements of income.
Multi-employer Pension and Benefit Plans The Coal Industry Retiree Health Benefit Act of 1992 (“Benefit Act”) provides for the funding of medical and death benefits for certain retired members of the United Mine Workers of America (“UMWA”) through premiums to be paid by assigned operators (former employers), transfers in 1993 and 1994 from an overfunded pension trust established for the benefit of retired UMWA members, and transfers from the Abandoned Mine Lands Fund (funded by a federal tax on coal production) commencing in 1995. The Company was a party to a lawsuit against the UMWA combined benefit fund associated with the Central Appalachia operations sold in the fourth quarter of 2005. The lawsuit contested premium calculations that involved the assignment of retiree benefits by the Social Security Administration to the signatory companies. During the year ended December 31, 2007, the litigation was resolved in favor of the signatory companies to the combined benefit fund and the Company recognized income of $3.8 million, of which $3.4 million is included as a reduction in cost of coal sales and $0.4 million is included in interest income in the accompanying consolidated statements of income. These excerpts taken from the ACI 10-K filed Feb 29, 2008. Multi-employer
Pension and Benefit Plans
The Coal Industry Retiree Health Benefit Act of 1992
(“Benefit Act”) provides for the funding of medical
and death benefits for certain retired members of the UMWA
through premiums to be paid by assigned operators (former
employers), transfers in 1993 and 1994 from an overfunded
pension trust established for the benefit of retired UMWA
members, and transfers from the Abandoned Mine Lands Fund
(funded by a federal
Table of Contents
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
tax on coal production) commencing in 1995. Since the sale of
the Central Appalachia operations sold in the fourth quarter of
2005 to Magnum, the Company reimburses Magnum for premiums
related to the retirees of those operations. The Company treats
its obligation under the Benefit Act as a participation in a
multi-employer plan and records expense as premiums are paid.
The Company recorded expense of $1.5 million,
$1.1 million and $3.4 million in the years ended
December 31, 2007, 2006 and 2005, respectively, for
premiums pursuant to the Benefit Act.
The Company was a party to a lawsuit against the UMWA combined
benefit fund associated with the Central Appalachia operations
sold in the fourth quarter of 2005. The lawsuit contested
premium calculations that involved the assignment of retiree
benefits by the Social Security Administration to the signatory
companies. During the year ended December 31, 2007, the
litigation was resolved in favor of the signatory companies to
the combined benefit fund and the Company recognized income of
$3.8 million, of which $3.4 million is included as a
reduction in cost of coal sales and $0.4 million is
included in interest income in the accompanying Consolidated
Statements of Income.
Multi-employer Pension and Benefit Plans The Coal Industry Retiree Health Benefit Act of 1992 (“Benefit Act”) provides for the funding of medical and death benefits for certain retired members of the UMWA through premiums to be paid by assigned operators (former employers), transfers in 1993 and 1994 from an overfunded pension trust established for the benefit of retired UMWA members, and transfers from the Abandoned Mine Lands Fund (funded by a federal
Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) tax on coal production) commencing in 1995. Since the sale of the Central Appalachia operations sold in the fourth quarter of 2005 to Magnum, the Company reimburses Magnum for premiums related to the retirees of those operations. The Company treats its obligation under the Benefit Act as a participation in a multi-employer plan and records expense as premiums are paid. The Company recorded expense of $1.5 million, $1.1 million and $3.4 million in the years ended December 31, 2007, 2006 and 2005, respectively, for premiums pursuant to the Benefit Act. The Company was a party to a lawsuit against the UMWA combined benefit fund associated with the Central Appalachia operations sold in the fourth quarter of 2005. The lawsuit contested premium calculations that involved the assignment of retiree benefits by the Social Security Administration to the signatory companies. During the year ended December 31, 2007, the litigation was resolved in favor of the signatory companies to the combined benefit fund and the Company recognized income of $3.8 million, of which $3.4 million is included as a reduction in cost of coal sales and $0.4 million is included in interest income in the accompanying Consolidated Statements of Income. This excerpt taken from the ACI 10-K filed Mar 1, 2007. Multi-employer Pension and
Benefit Plans |
The Coal Industry Retiree Health Benefit Act of 1992
(“Benefit Act”) provides for the funding of medical
and death benefits for certain retired members of the UMWA
through premiums to be paid by assigned operators (former
employers), transfers in 1993 and 1994 from an overfunded
pension trust established for the benefit of retired UMWA
members, and transfers from the Abandoned Mine Lands Fund
(funded by a federal tax on coal production) commencing in 1995.
The Company treats its obligation under the Benefit Act as a
participation in a multi-employer plan and records expense as
premiums are paid. The Company recorded expense of
$1.1 million, $3.4 million and $6.0 million in
the years ended December 31, 2006, 2005 and 2004,
respectively, for premiums pursuant to the Benefit Act.
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