Congress Seeks to Restore Delphi Pension Benefits - ASPPA .

Delphi Coding

4 Views

        

The House of Representatives has passed legislation that would restore fully vested monthly benefits for eligible participants of Delphi’s pension plans. 

The House in a 254-175 vote on July 27 passed H.R. 6929, a measure Rep. Daniel Kildee (D-MI) introduced on March 3, 2022. The bill would restore the full vested monthly benefits of eligible participants of plans sponsored by Delphi Corporation and terminated because General Motors declared bankruptcy in 2009.

The bill would establish and provide appropriations for a fund to pay the full vested benefits and also states how the lump-sum payments will be treated for tax purposes. 

The Senate version of the legislation, S. 3766, was introduced by Sen. Sherrod Brown (D-OH) on March 7. It was referred to the Finance Committee that day; the committee has not yet taken action on the bill. 

Delphi Technologies, a parts and components supplier to auto makers that was spun off from General Motors (GM) in 1999, sponsored six single-employer pension plans. Delphi filed for bankruptcy in October 2005. As part of the bankruptcy reorganization plan, GM agreed to the transfer of up to $3.4 billion of liabilities from the Delphi Hourly Plan to the GM Hourly-Rate Employees Pension Plan. On June 1, 2009, GM filed for bankruptcy; in July 2009, GM advised Delphi that it would not assume the hourly plan and would not transfer additional liabilities from Delphi to the GM pension plan. Because GM declined to assume the additional liabilities from the Delphi pension plans, the PBGC terminated the Delphi DB plans, effective July 31, 2009. Benefits were reduced for some participants in Delphi plans in accordance with laws that provide that workers cannot receive benefits from the PBGC that exceed a maximum set by law.