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WV senator announces benefits protection legislation

WEST Virginian Senator Jay Rockefeller and Congressman Nick Rahall have announced plans to introd...

Staff Reporter

Rockefeller released a statement on Friday after he and Rahall met with coal retirees and United Mine Workers of America president Cecil Roberts.

“In West Virginia, a promise made is a promise kept,” Rockefeller said.

“And when it comes to our coal miners – who put their lives, limbs and lungs on the line under the promise of a secure future for them and their families – there should never be any backing away from that pledge.

“I’ve heard from retirees and their loved ones who are deeply fearful and rightfully angry.

“This legislation is about human decency, it’s about doing what’s right and it’s about having the backs of those who have ours deep underground.”

The legislation, called the Coalfield Accountability and Retired Employee Act, would transfer money from the abandoned mine land fund to the UMWA 1974 pension plan.

The union plan, which covers more than 100,000 mineworkers, including more than 35,000 West Virginians, is said to be severely underfunded due to a reduction in contributions.

The bill would also transfer some retiree obligations to the 1992 benefit plan and would guarantee that the full value of employer cash contributions go to the retirees.

The announcement comes amid union protests against Peabody Energy, Arch Coal and Patriot Coal for allegedly reneging on health care benefits for more than 12,000 retirees and dependents.

Patriot Coal is currently in the middle of a Chapter 11 bankruptcy reorganization and has proposed the establishment of a trust which will provide workers with no more than $US40 million annually up to a limit of $200 million.

The total will not meet the needs of impacted workers, as documents reflect retiree benefits in 2012 totalled $71 million – an annual total which is projected to rise to about $73.8 million.

Peabody Energy spun off Patriot in 2007 and Arch Coal spun off Magnum Coal shortly after.

The UMWA has taken the two producers to task, claiming the spin-off companies were created in part to shun their responsibilities to former workers.

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