Directs the Pension Benefit Guaranty Corporation (PBGC) to treat monthly benefits for certain Delphi- and PHI‑related pension plans as the participants’ full vested benefits when plans terminate. This means covered retirees and beneficiaries will have their benefits recalculated to reflect the full amount they earned, not the reduced guarantees many received. PBGC must redo past benefit calculations, pay any back pay (including a lump‑sum catch‑up within 180 days of enactment), and continue to use its normal appeal and review process. Payments come from PBGC’s existing ERISA section 4005 fund balance. A special tax rule lets recipients spread income from the lump‑sum over three tax years unless they choose a different approach. Treasury, Labor, and PBGC may issue regulations to carry this out.
When determining guaranteed monthly benefits under ERISA section 4022 for eligible participants or beneficiaries of certain covered plans at plan termination, the amount of monthly benefits shall equal the full vested plan benefit for the participant. This applies for purposes of PBGC’s determination of guaranteed benefits.
This Act does not change prior allocations of assets and recoveries under ERISA sections 4044(a) and 4022(c) as previously determined by PBGC, and PBGC’s applicable rules, practices, and policies on benefits payable in terminated single-employer plans continue to apply to the covered plans except as otherwise provided in this section.
If a participant’s or beneficiary’s monthly benefits were calculated before enactment, PBGC must recalculate those amounts pursuant to the requirement that monthly benefits equal the full vested plan benefit and adjust any subsequent payments as soon as practicable after enactment.
PBGC, in consultation with the Secretary of the Treasury and the Secretary of Labor, must make a lump-sum payment no later than 180 days after enactment to each eligible participant or beneficiary whose guaranteed benefits are recalculated. The lump-sum for an eligible participant equals the excess of (I) the total of the participant’s full vested plan benefits for all months for which guaranteed benefits were paid prior to recalculation over (II) the sum of any applicable payments already made to the participant. The lump-sum for an eligible beneficiary equals (I) the amount that would be determined under the participant calculation if the participant were still in pay status, plus (II) additional excess amounts as specified in the statute.
Defines an 'eligible participant or beneficiary' as a person who (I) as of enactment is in pay status under a covered plan or eligible for future payments under the plan, (II) has received or will receive applicable payments in connection with the plan that do not exceed their full vested plan benefits, and (III) is not covered by the 1999 GM-union top-up agreements for certain hourly employees transferred to the Delphi Hourly-Rate Employees Pension Plan.
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last progress March 6, 2025 (12 months ago)
Introduced on March 6, 2025 by Victoria Spartz
Updated 5 days ago
Last progress February 13, 2025 (1 year ago)
