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.
After PBGC took responsibility for your Delphi pension benefit in 2009, we learned that your benefit had been funded by two separate sources. Most of your benefit was funded by Delphi. However, a small portion was funded by your employee contributions. Your pension plan used your contributions to purchase an annuity for you from an insurance company. This small annuity will now be paid by Prudential.
PBGC has been working for several years with Prudential and the other insurers involved (Aetna Life Insurance Company and Metropolitan Life Insurance Company) on this long, complex process. We now have an agreement with the insurers to have Prudential pay the annuities. We wanted to ensure a smooth transition with minimal impact on you and the other retirees.
Your annuity was purchased long before PBGC became responsible for your pension plan. It is separate from the benefit that PBGC pays. The insurance company has an irrevocable commitment to pay the annuity.
Sorry, but no. The insurers are responsible for paying the annuity. PBGC can't keep paying it.
The annuities were actually sold by all three companies. However to keep it simple, Prudential is acting as the lead administrator and will pay your annuity on behalf of the three insurers.
The annuities were purchased by General Motors before 2000. When Delphi was spun off from General Motors, the annuities were transferred to the Delphi Retirement Program for Salaried Employees, effective May 1, 2000.
We can't speak for Prudential on that issue. Please contact them at 1-800-621-1089 for an answer to your question.
No. For purposes of the limit, your total benefit continues to include the annuity amount. If your benefit was reduced because of the congressional limits, it will not change.
Yes. Since you'll be getting paid by both organizations, you will have to contact them both.
The best way to keep in touch with PBGC is through our online service, MyPBA. Also, you can call us Monday through Friday, 8 a.m.-7 p.m. ET at 1-800-400-7242.
Prudential's telephone number is 1-800-621-1089.
You will have to apply with both PBGC and Prudential.
The easiest way to apply for your PBGC benefit is through our secure online service, MyPBA. You should fill out your application no sooner than four months before you want to start benefits. To start receiving your annuity payment from Prudential, call 1-800-621-1089.
No, if you haven't yet retired, you can start getting your benefit from PBGC at the same time as your annuity from Prudential, or on a different date. It's up to you. Also, you don't have to choose the same form of annuity for both benefits.