S.Amdt. 6394

SA 6394 is an amendment proposed by Mr. HUSTED to be added to bill S. 4784. Its purpose is to change how benefits are calculated for certain auto and defense pensions.

What it aims to change or add:

• Benefit Increases: It changes the calculation for monthly benefits for eligible participants or beneficiaries of specific covered plans. The amount of monthly benefits will now be equal to the full vested plan benefit.

• Recalculation and Back Pay: The Pension Benefit Guaranty Corporation (the corporation) must recalculate benefits that were determined before the Act's enactment. Eligible individuals will receive a lump-sum payment for past-due benefits, which includes a 6 percent annual interest rate on underpayments.

• Eligible Participants: This applies to people in pay status or eligible for future payments who have not received benefits exceeding the full vested plan benefit and are not covered by specific 1999 agreements between General Motors and various unions.

• Covered Plans: The amendment specifically names the following plans:

  • 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

• New Trust Fund: It establishes the Delphi Full Vested Plan Benefit Trust Fund in the Treasury to pay for the increased monthly benefits and the administrative costs of the corporation.