This bill raises the amount of pension benefits guaranteed by the Pension Benefit Guaranty Corporation (PBGC) for certain Delphi-related retirement plans. For eligible participants and beneficiaries in the listed plans, the PBGC would guarantee monthly payments equal to the full vested plan benefit instead of the smaller normal guarantee that otherwise applies. The PBGC must recalculate benefits already paid or being paid and adjust future payments. The PBGC must make lump-sum payments to correct past underpayments within 180 days after the law takes effect. Those lump sums will include an increase to account for foregone interest at a 6 percent annual rate on each past-due month. The bill lists six covered Delphi-related plans and excludes people covered by certain 1999 General Motors top-up agreements. The PBGC can issue rules and its determinations are subject to its normal administrative review process. The bill also changes tax treatment of the lump-sum payments (they are includible in income ratably over three taxable years unless the recipient elects otherwise) and makes a small amendment to ERISA’s funding language so these payments count as part of PBGC’s guaranteed basic benefits.
If you are an eligible participant or beneficiary in one of the covered Delphi-related plans, your guaranteed monthly benefit would be recalculated to the full vested plan amount. If you already received payments that were less than that full amount, PBGC will make a lump-sum payment to cover the shortfall plus interest. The bill lists who is eligible and excludes people covered by the 1999 GM top-up agreements. PBGC decisions under this law can be reviewed through its normal administrative process.
The bill says the payments and related PBGC administrative costs will be paid from the unobligated balance of the PBGC fund established under ERISA section 4005 for basic benefits guaranteed under ERISA section 4022. No publicly available information on the total dollar cost or how long the unobligated balance will cover these payments.
No publicly available information.
No publicly available information.