Susan Muffley Act of 2025

Summary

Increases Pension Benefit Guaranty Corporation (PBGC) payments for participants and beneficiaries of six specified terminated single-employer plans tied to Delphi/PHI/ASEC so affected people receive their full vested plan benefit rather than the smaller statutory PBGC guarantee. PBGC must recalculate past underpayments and, after consulting Treasury and Labor, make lump-sum payments within 180 days to remedy underpayments. A Treasury trust fund is created to cover the increased benefit payments and PBGC administrative costs; Treasury will provide sums as necessary. Recalculations and payments are subject to PBGC administrative review, and PBGC with Treasury and Labor may issue implementing regulations.

• Applies the full vested-benefit rule to PBGC-guaranteed benefits for six Delphi/PHI/ASEC terminated single-employer plans, removing the 60-month phase-in and maximum cap for those plans.
• Requires PBGC to recalculate prior payments and pay any underpayments as lump sums within 180 days of enactment after consulting Treasury and Labor.
• Creates a Treasury trust fund to receive sums from Treasury to cover increased benefit payments and PBGC administrative expenses.
• Eligibility is limited to participants and beneficiaries in pay status or entitled to future payments who previously received less than their full vested benefit; some GM top-up agreement beneficiaries are excluded.
• Recalculations and lump-sum payments are subject to PBGC administrative review and implementing regulations may be issued by PBGC, Treasury, and Labor.
• Direct federal outlays will increase because Treasury must supply amounts needed to the trust fund to pay the enhanced benefits.
• Narrow, targeted change affecting a specific group of terminated plans rather than a broad reform of PBGC rules.
• Creates an immediate administrative burden on PBGC to recalculate past determinations and manage lump-sum distributions.