S.Amdt. 6668

SA 6668, submitted by Mr. Husted, aims to change how benefits are calculated for specific auto and defense pensions and to adjust premium due dates for certain plan years.

Changes to Pension Benefits The amendment adds a section to ensure that eligible participants and beneficiaries of specific covered plans receive their full vested plan benefit. This calculation ignores certain phase-in limits and maximum guaranteed benefit limitations usually applied under the Employee Retirement Income Security Act of 1974.

• Recalculation and Payments: If benefits were calculated before this Act, the Pension Benefit Guaranty Corporation (the corporation) must recalculate them. This includes making lump-sum payments for past-due benefits, including a 6 percent annual interest rate for underpayments.
• Eligible Persons: This applies to those in pay status or eligible for future payments, provided they meet specific payment criteria and are not covered by 1999 agreements between General Motors and various unions regarding top-up benefits.
• Covered Plans: The specific plans affected are:
  • 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: The amendment establishes the Delphi Full Vested Plan Benefit Trust Fund in the Treasury to cover these increased benefit payments and administrative costs.

Pension Payment Acceleration The amendment also changes the premium due date for plan years starting after December 31, 2034, and before January 1, 2036. The new due date is the 15th day of the ninth calendar month that begins on or after the first day of the premium payment year.