Susan Muffley Act of 2025

Key Points

• This bill would restore full vested pension benefits to retirees from six Delphi-related pension plans whose benefits were cut when the Pension Benefit Guaranty Corporation (PBGC) took over their terminated plans. The law removes the phase-in limits and maximum benefit caps that reduced many workers' monthly checks.
• Retirees would receive a lump-sum back payment within 180 days of enactment covering all the money they were shorted since their pensions were taken over. The payment includes 6 percent annual interest to compensate for years of waiting.
• To soften the tax hit from a large one-time payment, retirees can spread the income over three tax years instead of reporting it all at once. Surviving spouses can also elect to continue this spread if the retiree dies before the three-year period ends.
• A new trust fund called the Delphi Full Vested Plan Benefit Trust Fund would be created in the U.S. Treasury to pay for the increased benefits. The money comes from general government funds, not from the existing PBGC insurance program.
• Certain hourly workers who were already covered by a 1999 agreement between General Motors and unions providing a top-up benefit are excluded from the bill. This prevents double-dipping for workers who already had their pension shortfalls addressed.

Votes

No votes have been recorded for this legislation yet.