Sponsors (41)
This bill restores full vested pension benefits and accelerates catch-up payments (with temporary tax relief) for specified retirees, but the cost is borne by taxpayers and could weaken PBGC finances while leaving some similarly harmed retirees excluded.
Retirees and beneficiaries of the listed Delphi/PHI/ASEC plans will receive their full vested monthly pension payments instead of reduced PBGC-guaranteed amounts, restoring lost retirement income.
Eligible participants and beneficiaries will receive lump-sum catch-up payments within 180 days to make up past underpayments, delivering near-term cash relief to affected retirees.
Recipients can elect to spread the tax impact of the lump-sum over three tax years, reducing immediate tax burdens for retirees who receive large one-time payments.
All taxpayers will bear the cost because the Treasury will appropriate unspecified sums from the general fund to cover the increased PBGC payments, shifting the fiscal burden to the public.
The PBGC's insurance program financial position could weaken if large retroactive payments reduce its reserves, potentially leading to higher premiums or benefit limits for other current and future participants.
Workers excluded by the bill (notably 1999 GM top-up recipients) receive no relief, creating unequal treatment among retirees who experienced similar benefit shortfalls.
Based on analysis of 2 sections of legislative text.
Requires PBGC to pay covered participants and beneficiaries guaranteed monthly benefits equal to full vested plan benefits and to pay retroactive lump sums within 180 days.
Introduced February 13, 2025 by Michael R. Turner · Last progress February 13, 2025
Requires the Pension Benefit Guaranty Corporation (PBGC) to pay covered plan participants and beneficiaries guaranteed monthly benefits equal to their full vested plan benefit (rather than a reduced guarantee) and to recalculate prior PBGC-guaranteed benefits so eligible people receive the larger amount. PBGC must make retroactive lump-sum payments for past underpayments within 180 days of enactment after consulting Treasury and Labor, while preserving PBGC's existing recovery rights and asset allocation rules under current law.