HR1895-119

1. Short title This Act may be cited as the Delphi Retirees Pension Restoration Act.

2. Guaranteed benefit calculation for certain plans 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. 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. 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. 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— in the case of an eligible participant, the excess of— 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 the sum of any applicable payments made to the eligible participant; and in the case of an eligible beneficiary, the sum of— 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 the excess of— 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 the sum of any applicable payments made to the eligible beneficiary. For purposes of this section, an eligible participant or beneficiary is a participant or beneficiary who— 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; 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 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. For purposes of this paragraph, applicable payments to a participant or beneficiary in connection with a plan consist of the following: Payments under the plan equal to the normal benefit guarantee of the participant or beneficiary. 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. For purposes of this subsection— 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). 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. The covered plans specified in this paragraph are the following: The Delphi Hourly-Rate Employees Pension Plan. The Delphi Retirement Program for Salaried Employees. The PHI Non-Bargaining Retirement Plan. The ASEC Manufacturing Retirement Program. The PHI Bargaining Retirement Plan. The Delphi Mechatronic Systems Retirement Program. 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. 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. 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. 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. 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. If— a taxpayer with respect to whom paragraph (1) applies dies, such taxpayer is an eligible participant, the surviving spouse of such eligible participant is entitled to a survivor benefit from the corporation with respect to such eligible participant, and such surviving spouse elects (at such time and in such manner as the Secretary may provide) the application of this subparagraph, 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).