March 6, 2025
Mrs. Spartz (for herself, Mr. Turner of Ohio, Mr. Rulli, Mr. Austin Scott of Georgia, Mr. Langworthy, Mr. Thanedar, Ms. Tlaib, Ms. Tenney, Mr. Stutzman, Mr. LaMalfa, Mr. Wilson of South Carolina, Mr. Hamadeh of Arizona, Ms. Kaptur, and Mr. Carson) introduced the following bill; which was 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
To increase the benefits guaranteed in connection with certain pension plans, and for other purposes.
Section 1. Short title
This Act may be cited as the Delphi Retirees Pension Restoration Act
.
Sec. 2. Guaranteed benefit calculation for certain plans
(a) In general
(1) Increase to full vested plan benefit
(A) In general
For purposes of determining what benefits are guaranteed under section 4022 of the Employee Retirement Income Security Act of 1974 (in this section referred to as ERISA
) with respect to an eligible participant or beneficiary under a covered plan specified in paragraph (4) in connection with the termination of such plan, the amount of monthly benefits shall be equal to the full vested plan benefit with respect to the participant.
(B) No effect on previous determinations
Nothing in this Act shall be construed to change the allocation of assets and recoveries under sections 4044(a) and 4022(c) of ERISA as previously determined by the Pension Benefit Guaranty Corporation (in the section referred to as the corporation
) for the covered plans specified in paragraph (4), and the corporation’s applicable rules, practices, and policies on benefits payable in terminated single-employer plans shall, except as otherwise provided in this section, continue to apply with respect to such covered plans.
(2) Recalculation of certain benefits
(A) In general
In any case in which the amount of monthly benefits with respect to an eligible participant or beneficiary described in paragraph (1) was calculated prior to the date of enactment of this Act, the corporation shall recalculate such amount pursuant to paragraph (1), and shall adjust any subsequent payments of such monthly benefits accordingly, as soon as practicable after such date.
(B) Lump-sum payments of past-due benefits
Not later than 180 days after the date of enactment of this Act, the corporation, in consultation with the Secretary of the Treasury and the Secretary of Labor, shall make a lump-sum payment to each eligible participant or beneficiary whose guaranteed benefits are recalculated under subparagraph (A) in an amount equal to—
(i)
in the case of an eligible participant, the excess of—
(I)
the total of the full vested plan benefits of the participant for all months for which such guaranteed benefits were paid prior to such recalculation, over
(II)
the sum of any applicable payments made to the eligible participant; and
(ii)
in the case of an eligible beneficiary, the sum of—
(I)
the amount that would be determined under clause (i) with respect to the participant of which the eligible beneficiary is a beneficiary if such participant were still in pay status; plus
(II)
the excess of—
(aa)
the total of the full vested plan benefits of the eligible beneficiary for all months for which such guaranteed benefits were paid prior to such recalculation, over
(bb)
the sum of any applicable payments made to the eligible beneficiary.
Notwithstanding the previous sentence, the corporation shall increase each lump-sum payment made under this subparagraph to account for foregone interest in an amount determined by the corporation designed to reflect a 6 percent annual interest rate on each past-due amount attributable to the underpayment of guaranteed benefits for each month prior to such recalculation.
(C) Eligible participants and beneficiaries
(i) In general
For purposes of this section, an eligible participant or beneficiary is a participant or beneficiary who—
(I)
as of the date of the enactment of this Act, is in pay status under a covered plan or is eligible for future payments under such plan;
(II)
has received or will receive applicable payments in connection with such plan (within the meaning of clause (ii)) that does not exceed the full vested plan benefits of such participant or beneficiary; and
(III)
is not covered by the 1999 agreements between General Motors and various unions providing a top-up benefit to certain hourly employees who were transferred from the General Motors Hourly-Rate Employees Pension Plan to the Delphi Hourly-Rate Employees Pension Plan.
(ii) Applicable payments
For purposes of this paragraph, applicable payments to a participant or beneficiary in connection with a plan consist of the following:
(I)
Payments under the plan equal to the normal benefit guarantee of the participant or beneficiary.
(II)
Payments to the participant or beneficiary made pursuant to section 4022(c) or otherwise received from the corporation in connection with the termination of the plan.
(3) Definitions
For purposes of this subsection—
(A) Full vested plan benefit
The term full vested plan benefit means the amount of monthly benefits that would be guaranteed under section 4022 of ERISA as of the date of plan termination with respect to an eligible participant or beneficiary if such section were applied without regard to the phase-in limit in subsection (b)(1) of such Act and the maximum guaranteed benefit limitation in subsection (b)(3) of such Act (including the accrued-at-normal limitation).
(B) Normal benefit guarantee
The term normal benefit guarantee means the amount of monthly benefits guaranteed under such section with respect to an eligible participant or beneficiary without regard to this Act.
(4) Covered plans
The covered plans specified in this paragraph are the following:
(A)
The Delphi Hourly-Rate Employees Pension Plan.
(B)
The Delphi Retirement Program for Salaried Employees.
(C)
The PHI Non-Bargaining Retirement Plan.
(D)
The ASEC Manufacturing Retirement Program.
(E)
The PHI Bargaining Retirement Plan.
(F)
The Delphi Mechatronic Systems Retirement Program.
(5) Treatment of PBGC determinations
Any determination made by the corporation under this section concerning a recalculation of benefits or lump-sum payment of past-due benefits shall be subject to administrative review by the corporation. Any new determination made by the corporation under this section shall be governed by the same administrative review process as any other benefit determination by the corporation.
(b) Funding for payment of increased benefits
The costs of any payment for the portion of monthly benefits guaranteed to a participant or beneficiary pursuant to subsection (a) and necessary administrative and operating expenses of the corporation relating to such payment shall be paid using amounts derived from the unobligated balance of the fund established under section 4005 of ERISA with respect to basic benefits guaranteed under section 4022 of ERISA.
(c) Regulations
The corporation, in consultation with the Secretary of the Treasury and the Secretary of Labor, may issue such regulations as necessary to carry out this section.
(d) Tax treatment of lump-Sum payments
(1) In general
Unless the taxpayer elects (at such time and in such manner as the Secretary may provide) to have this paragraph not apply with respect to any lump-sum payment under subsection (a)(2)(B), the amount of such payment shall be included in the taxpayer’s gross income ratably over the 3-taxable-year period beginning with the taxable year in which such payment is received.
(2) Special rules related to death
(A) In general
If the taxpayer dies before the end of the 3-taxable-year period described in paragraph (1), any amount to which paragraph (1) applies which has not been included in gross income for a taxable year ending before the taxable year in which such death occurs shall be included in gross income for such taxable year.
(B) Special election for surviving spouses of eligible participants
If—
(i)
a taxpayer with respect to whom paragraph (1) applies dies,
(ii)
such taxpayer is an eligible participant,
(iii)
the surviving spouse of such eligible participant is entitled to a survivor benefit from the corporation with respect to such eligible participant, and
(iv)
such surviving spouse elects (at such time and in such manner as the Secretary may provide) the application of this subparagraph,
subparagraph (A) shall not apply and any amount which would have (but for such taxpayer’s death) been included in the gross income of such taxpayer under paragraph (1) for any taxable year beginning after the date of such death shall be included in the gross income of such surviving spouse for the taxable year of such surviving spouse ending with or within such taxable year of the taxpayer.
(e) Amendment to section 4005 of ERISA
Section 4005(b)(2)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1305(b)(2)(A)) is amended by inserting after 4022
the following: (including any portion of monthly benefits guaranteed pursuant to section 2(a) of the Delphi Retirees Pension Restoration Act)
.