US Department of Labor announces final rule adopting standards for coal mine operators’ self-insurance under Black Lung Benefits Act

News Release

US Department of Labor announces final rule adopting standards for coal mine operators' self-insurance under Black Lung Benefits Act

WASHINGTON - The U.S. Department of Labor announced today that its Office of Worker's Compensation Programs has issued a final rule revising the regulations under the Black Lung Benefits Act related to self-insurance by coal mine operators.

Under the new standard,self-insured coal mine operators will be required to post adequate security for their Black Lung benefit liabilities. It also will protect the Black Lung Disability Trust Fund against assuming the liabilities of bankrupt coal mine operators.

The final rule also includes the following changes:

• Reduces the required security amount of an operator's liability from 120 percent to 100 percent.
• Provides option for operators to phase in their increased security requirement.
• Streamlines the process for operators to appeal OWCP's self-insurance determinations.
• Allows operators currently securing liabilities with 501(c)(21) trusts to continue to do so, with improved monitoring.
• Prevents the establishment of new trusts after 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," said Office of Workers' Compensation Programs Director Christopher Godfrey. "This will ensure that mine operators, not taxpayers, bear responsibility for benefit payments under the Black Lung Benefits Act, as Congress intended."

The rule becomes effective 30 days from its publication date in the Federal Register. For more information about the rule, visit the OWCP Updates to Mine Operator Self-Insurance Program.