S. 1950: Susan Muffley Act of 2025

This bill, known as the Susan Muffley Act of 2025, aims to enhance pension benefits for specific participants and beneficiaries of certain pension plans under the Employee Retirement Income Security Act of 1974 (ERISA). Below is a summary of the key provisions of the bill:

1. Guaranteeing Full Vested Benefits

The bill mandates that for certain covered pension plans, the monthly benefits determined to be guaranteed when a pension plan is terminated must equal the full vested plan benefits for each eligible participant or beneficiary.

• This provision ensures that no participant receives less than their full vested benefits when their pension plan is unwound.
• The bill does not alter how assets and recoveries are allocated under existing law regarding pension plans.

2. Recalculation of Benefits

Once the bill is enacted, the Pension Benefit Guaranty Corporation (PBGC) must recalculate the monthly benefits of eligible participants and beneficiaries. Key points include:

• Participants whose benefits were previously calculated will have their amounts adjusted to reflect their full vested benefits.
• Participants and beneficiaries will receive one-time lump-sum payments to account for any past shortfalls in guaranteed benefits, calculated based on the difference between their previous and recalculated benefits.
• The PBGC must issue these lump-sum payments within 180 days of the bill's enactment, including interest on the underpaid amounts.

3. Definitions of Eligible Participants and Benefits

Eligible participants or beneficiaries are defined as:

• Those who are currently receiving payments or are eligible for future payments from the covered plans.
• Participants who have received or can expect payments that do not exceed their full vested benefits.
• Individuals not included under specific benefit agreements from General Motors affecting certain employees who transitioned to a different plan.

4. Covered Plans

The bill specifies which pension plans are to be covered under these provisions:

• 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.

5. Creation of a Trust Fund

The bill creates a trust fund known as the Delphi Full Vested Plan Benefit Trust Fund. Key aspects include:

• The fund will be established in the U.S. Treasury and will provide necessary payments for the enhanced benefits as outlined in the bill.
• Funds will be appropriated from the Treasury to cover the costs of additional benefits and the administrative expenses of the PBGC related to these payments.

6. Regulatory Authority

The PBGC, in collaboration with the Secretaries of the Treasury and Labor, will have the authority to issue regulations necessary for implementing the provisions of the bill.

Relevant Companies

• GM (General Motors): Given the history of pension benefit agreements impacting certain employees, GM may be affected due to its involvement in pension plans and agreements specified in the bill.