H.R.1895 - Delphi Retirees Pension Restoration Act (119th Congress)
Summary
H.R.1895, the Delphi Retirees Pension Restoration Act, aims to increase the pension benefits guaranteed to certain retirees of Delphi Corporation. The bill mandates recalculation of benefits to ensure they reflect the full vested plan benefit, addressing previous shortfalls. It also provides for lump-sum payments to cover past-due amounts, including interest.
Expected Effects
The bill will directly impact eligible Delphi retirees by increasing their pension payments and providing retroactive payments to compensate for previous underpayments. The Pension Benefit Guaranty Corporation (PBGC) will be responsible for recalculating and disbursing these benefits. The costs will be covered by the unobligated balance of the fund established under section 4005 of ERISA.
Potential Benefits
- Increased pension benefits for eligible Delphi retirees.
- Lump-sum payments to cover past-due benefits, including interest.
- Recalculation of benefits to ensure they reflect the full vested plan benefit.
- Administrative review process for any disputes regarding benefit recalculations.
- Potential for improved financial security for affected retirees and their families.
Potential Disadvantages
- Potential strain on the PBGC's resources, although the bill specifies using unobligated funds.
- Complexity in recalculating benefits and disbursing lump-sum payments.
- Possible delays in implementation due to administrative processes.
- The bill's focus on a specific group of retirees might raise questions of fairness from other retirees with pension issues.
- The tax treatment of lump-sum payments could be complex for some retirees, requiring careful planning.
Constitutional Alignment
The bill appears to align with the General Welfare Clause of the Constitution, as it aims to provide economic security to a specific group of retirees. The Fifth Amendment's Due Process Clause is also relevant, as the bill seeks to rectify past underpayments and ensure fair treatment of pension benefits. The legislative power to enact such measures is vested in Congress under Article I, Section 8, which grants the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).