The U.S. Department of Labor has announced a final rule concerning self-insurance regulations for coal mine operators under the Black Lung Benefits Act. The Office of Workers' Compensation Programs (OWCP) issued this revision to ensure that self-insured coal mine operators post adequate security for their liabilities related to Black Lung benefits. This measure aims to protect the Black Lung Disability Trust Fund from assuming liabilities in cases where coal mine operators face bankruptcy.
Key changes in the final rule include reducing the required security amount from 120 percent to 100 percent of an operator's liability, offering an option for operators to phase in their increased security requirement, and streamlining the appeal process for OWCP’s self-insurance determinations. Additionally, it allows current operators using 501(c)(21) trusts to continue with improved monitoring but prevents the establishment of new trusts following the rule's publication.
"This final rule will give greater transparency and clarity for mine operators about the procedures and standards for obtaining self-insurance authorization," stated Christopher Godfrey, Director of the Office of Workers’ Compensation Programs. "This will ensure that mine operators, not taxpayers, bear responsibility for benefit payments under the Black Lung Benefits Act, as Congress intended."
The rule is set to take effect 30 days after its publication in the Federal Register. Further details can be found on the OWCP Updates to Mine Operator Self-Insurance Program website.
