S.Amdt. 6107

SA 6107 aims to change how benefits are calculated for certain auto and defense pensions. It adds a new section (SEC. 1094) to the bill to ensure eligible participants and beneficiaries of specific covered plans receive their full vested plan benefit instead of the normal benefit guarantee.

The amendment focuses on the following changes:

• Benefit Increases: It requires the Pension Benefit Guaranty Corporation (the corporation) to calculate monthly benefits as the full vested plan benefit, ignoring certain phase-in limits and maximum guaranteed benefit limitations.
• Recalculation and Back Pay: The corporation must recalculate benefits for those already receiving payments and provide a lump-sum payment for any underpayments. This lump-sum includes a 6 percent annual interest rate for past-due amounts.
• Eligible Participants: This applies to people in pay status or eligible for future payments in specific plans, provided they are not covered by 1999 agreements between General Motors and various unions for certain hourly employees.
• Covered Plans: The change specifically applies to:
  • Delphi Hourly-Rate Employees Pension Plan
  • Delphi Retirement Program for Salaried Employees
  • PHI Non-Bargaining Retirement Plan
  • ASEC Manufacturing Retirement Program
  • PHI Bargaining Retirement Plan
  • Delphi Mechatronic Systems Retirement Program
• Funding: It establishes the Delphi Full Vested Plan Benefit Trust Fund in the Treasury to pay for these increased benefits and the corporation's administrative expenses.
• Payment Acceleration: It changes the premium due date for plan years starting after December 31, 2035, and before January 1, 2037.