[Congressional Record Volume 170, Number 80 (Wednesday, May 8, 2024)]
[Senate]
[Pages S3601-S3602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2034. Mr. BROWN (for himself, Mr. Braun, Ms. Stabenow, Ms.
Baldwin, Mr. Peters, and Mr. Young) submitted an amendment intended to
be proposed to amendment SA 1911 proposed by Ms. Cantwell (for herself,
Mr. Cruz, Ms. Duckworth, and Mr. Moran) to the bill H.R. 3935, to amend
title 49, United States Code, to reauthorize and improve the Federal
Aviation Administration and other civil aviation programs, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. 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 (29 U.S.C. 1322) 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
section shall be construed to change the allocation of assets
and recoveries under sections 4044(a) and 4022(c) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1344(a); 1322(c)) as previously determined by the Pension
Benefit Guaranty Corporation (referred to in this section 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) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1322(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 the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1322) 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 under subsection (b)(1) of such section
and the
[[Page S3602]]
maximum guaranteed benefit limitation under subsection (b)(3)
of such section (including the accrued-at-normal limitation).
(B) Normal benefit guarantee.--The term ``normal benefit
guarantee'' means the amount of monthly benefits guaranteed
under section 4022 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1322) with respect to an eligible
participant or beneficiary without regard to this section.
(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 a
trust fund to be known as the ``Delphi Full Vested Plan
Benefit Trust Fund'' (referred to in this subsection 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, out of amounts in the
Treasury not otherwise appropriated, such amounts as are
necessary for the costs of payments of the portions of
monthly benefits guaranteed to participants and beneficiaries
pursuant to subsection (a) and for necessary administrative
and operating expenses of the corporation relating to such
payments. The Fund shall be credited with amounts from time
to time as the Secretary of the Treasury, in coordination
with the Director of the corporation, determines appropriate,
out of amounts in the Treasury not otherwise appropriated.
(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.
(e) 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,
2033, and before November 1, 2033, shall be due not later
than September 15, 2033.
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