H.R. 1357

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1357 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 1357

To increase the benefits guaranteed in connection with certain pension 
plans, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 13, 2025

Mr. Turner of Ohio (for himself, Ms. Kaptur, Ms. Tenney, Ms. Moore of 
Wisconsin, Mr. Webster of Florida, Mr. Smith of Washington, Mr. Rulli, 
Mr. Austin Scott of Georgia, Mr. Baird, Mr. Bergman, Mr. Thanedar, Mr. 
Balderson, Mr. Steil, Mr. Pocan, Mr. Joyce of Ohio, Ms. McDonald Rivet, 
and Mrs. Spartz) introduced the following bill; which was referred to 
the Committee on Education and Workforce, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as 
fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To increase the benefits guaranteed in connection with certain pension 
plans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Susan Muffley Act of 2025''.

SEC. 2. 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 (in 
this section referred to as ``ERISA'') 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 Act shall be construed to change the allocation 
of assets and recoveries under sections 4044(a) and 
4022(c) of ERISA as previously determined by the 
Pension Benefit Guaranty Corporation (in the section 
referred to 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) 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 
ERISA 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 in subsection (b)(1) of such Act and the maximum 
guaranteed benefit limitation in subsection (b)(3) of 
such Act (including the accrued-at-normal limitation).
(B) Normal benefit guarantee.--The term ``normal 
benefit guarantee'' means the amount of monthly 
benefits guaranteed under such section with respect to 
an eligible participant or beneficiary without regard 
to this Act.
(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 of 
the United States a trust fund to be known as the ``Delphi Full 
Vested Plan Benefit Trust Fund'' (hereafter in this subsection 
referred to 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 from the general fund 
such amounts as are necessary for the costs of 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. The Fund shall be credited with 
amounts from time to time as the Secretary of the Treasury, in 
conjunction with the Director of the corporation, determines 
appropriate, from the general fund of the Treasury.
(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.
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