Sponsors (42)
The bill restores full vested pension amounts and provides retroactive lump-sum payments (with tax relief options) to affected Delphi-era retirees, but shifts fiscal costs to taxpayers and may weaken PBGC's financial position while leaving some former employees excluded.
Retirees and beneficiaries of the specified Delphi/PHI/ASEC plans will receive higher ongoing monthly pension payments equal to their full vested plan benefits instead of reduced PBGC guarantee levels.
Eligible participants and beneficiaries will receive retroactive lump-sum payments within 180 days to make up past underpayments.
Recipients of the lump-sum payment can elect to spread the taxable income over three tax years to reduce the immediate tax burden.
Federal taxpayers will bear the cost because the Treasury is appropriating unspecified sums from the general fund to cover the increased PBGC payments.
PBGC's insurance program financial position could worsen if large retroactive payments reduce its reserves, risking future premium increases or reduced benefit protections for other participants.
Workers who received 1999 GM top-up payments are excluded and receive no benefit from this change, creating unequal treatment among similarly affected retirees.
Based on analysis of 2 sections of legislative text.
Requires PBGC to pay participants their full vested monthly plan benefit, recalculates prior guarantees, and pays retroactive lump sums within 180 days.
Official title: To increase the benefits guaranteed in connection with certain pension plans, and for other purposes.
Introduced February 13, 2025 by Michael R. Turner · Last progress February 13, 2025
Changes the Pension Benefit Guaranty Corporation's guaranteed benefit calculation so eligible participants and beneficiaries receive the participant's full vested monthly plan benefit instead of possibly reduced guaranteed amounts. Requires PBGC to recalculate past determinations, pay past-due lump sums within 180 days after consulting Treasury and Labor, and adjust future payments accordingly. Defines who is eligible for the increased amounts, preserves PBGC's existing asset allocation and recovery rights, and excludes certain individuals covered by specified 1999 GM-union top-up transfers from eligibility.