[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6929 Received in Senate (RDS)]
<DOC>
117th CONGRESS
2d Session
H. R. 6929
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 28, 2022
Received
_______________________________________________________________________
AN ACT
To increase the benefits guaranteed in connection with certain pension
plans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Susan Muffley Act of 2022''.
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) Trust Fund for Payment of Increased Benefits.--
(1) Establishment.--There is established in the Treasury of
the United States a trust fund to be known as the ``Delphi Full
Vested Plan Benefit Trust Fund'' (hereafter in this subsection
referred to as the ``Fund''), consisting of such amounts as may
be appropriated or credited to the Fund as provided in this
section.
(2) Funding.--There is appropriated from the general fund
such amounts as are necessary for the costs of the payment of
the portion of monthly benefits guaranteed to a participant or
beneficiary pursuant to subsection (a) and for necessary
administrative and operating expenses of the corporation
relating to such payment. The Fund shall be credited with
amounts from time to time as the Secretary of the Treasury, in
conjunction with the Director of the corporation, determines
appropriate, from the general fund of the Treasury.
(3) Expenditures from fund.--Amounts in the Fund shall be
available for the payment of the portion of monthly benefits
guaranteed to a participant or beneficiary pursuant to
subsection (a) and for necessary administrative and operating
expenses of the corporation relating to such payment.
(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.
SEC. 3. PENSION VARIABLE RATE PREMIUM PAYMENT ACCELERATION.
Notwithstanding section 4007(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title
29, Code of Federal Regulations, any additional premium determined
under subparagraph (E) of section 4006(a)(3) of such Act (29 U.S.C.
1306(a)(3)) the due date for which is (but for this section) after
September 15, 2032, and before November 1, 2032, shall be due not later
than September 15, 2032.
SEC. 4. PENSION BENEFIT GUARANTY CORPORATION REPORT.
(a) Request for Information.--Not later than 1 year after the date
of enactment of this Act, the Director of the Pension Benefit Guaranty
Corporation shall issue a request for information to the public
regarding ways to ensure the long-term solvency of the Pension Benefit
Guaranty Corporation's insurance programs.
(b) Report to Congress.--Not later than 2 years after the date of
enactment of this Act, the Director of the Pension Benefit Guaranty
Corporation shall, taking into consideration the information received
in the request for information described in subsection (a), submit a
report, which shall include recommendations on how to ensure the long-
term solvency of the Pension Benefit Guaranty Corporation's insurance
programs, to the Committee on Education and Labor and the Committee on
Ways and Means of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions and the Committee on Finance of
the Senate.
Passed the House of Representatives July 27, 2022.
Attest:
CHERYL L. JOHNSON,
Clerk.