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Delphi Frequently Asked Questions

On August 10, 2009, the Pension Benefit Guaranty Corporation assumed responsibility for the pension plans of Delphi Corp. The plans ended as of July 31, 2009.

Delphi's six pension plans cover 70,000 workers and retirees. PBGC is paying, or will pay, pension benefits to those individuals up to limits set by federal law. In the near future, we will contact each person in the plans to let them know about the next steps.

For more general information about PBGC, please see the frequently asked questions about PBGC and the limits on its guarantees. In addition, we will continue to update the following answers to frequently asked questions from Delphi workers and retirees.

Since Delphi entered bankruptcy protection in 2005, the PBGC has worked with Delphi, GM and other stakeholders to keep all the pension plans ongoing or to have them assumed by GM. In 2008, GM did assume responsibility for a portion of the Delphi hourly pension plan, and was expected to take back the entire hourly plan. However, GM itself reorganized in bankruptcy earlier this year and now states it is unable to afford the additional financial burden of the Delphi pensions.


Delphi FAQs for Benefit Impacts from PBGC Sale


FAQs Why Some Delphi Salaried Retirees Will Receive Payments From Both PBGC and Prudential

Starting June 1, about 6,000 Delphi salaried retirees will see a change in how they receive their retirement benefit. They will continue to receive the same benefit amount.

If you are one of the affected retirees, PBGC sent you a letter on April 30. The letter explains that instead of a single monthly benefit payment, you will now receive two payments each month.

You will continue to receive a monthly payment from PBGC. The amount will be lower than the payment you currently receive from us. You will also receive a second payment each month from Prudential Insurance Company of America.

Added together, the two benefit payments equal the total monthly amount you have been receiving.

The average monthly amount that Prudential will be paying is $46. Our letter tells you the specific amounts you will receive from PBGC and from Prudential.

Seventy-six former Delphi salaried workers who have not yet begun to receive their pension benefit are also affected by this change. We have sent them a letter to explain how they should apply for their benefit from PBGC and from Prudential.


Important Tax Information for participants in Delphi’s Salaried Employees Plan

Important Information

The Delphi Salaried Plan (the Plan) allowed eligible participants to make after-tax contributions from their paychecks to increase their retirement benefits. PBGC does not report the taxable amount of your annuity payments to the Internal Revenue Service, only the total or gross amount paid. If you made after-tax employee contributions to the Plan you will need to determine the portion of your PBGC monthly benefit that is considered taxable income for your 2010 Federal Income Tax Return.


Delphi Plans that PBGC Insures

 

Plan No.

Plan Name

EIN

003

Delphi Hourly-Rate Employees Pension Plan 383430473

001

Delphi Retirement Program For Salaried Employees 383430473

002

ASEC Manufacturing Retirement Program 731474201

001

Delphi Mechatronic Systems Retirement Program 383589834

002

Packard-Hughes Interconnect Bargaining Retirement Plan 330595219

001

Packard-Hughes Interconnect Non-Bargaining Retirement Plan 330595219

 

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