On the Senate Floor, Portman Fights to Restore Retirement Benefits for Delphi Salaried Retirees
WASHINGTON, D.C. – Today on the Senate floor, U.S. Senators Rob Portman (R-OH) and Sherrod Brown (D-OH) asked unanimous consent for the Senate to pass their bipartisan, bicameral Susan Muffley Act. This legislation would restore retirement benefits to over 20,000 Delphi Salaried Retirees. Their request was blocked.
When General Motors (GM) filed for bankruptcy in 2009, the Obama administration terminated the pension plan for 20,000 Delphi salaried employees and the Pension Benefit Guaranty Corporation (PBGC) then cut their retirement benefits by as much as 70 percent. This includes more than 5,000 retirees in Ohio. The PBGC assumed responsibility for the terminated benefits but could not pay an individual more than a statutory maximum benefit. Therefore, salaried retirees suffered significant losses to their benefits, with devastating impacts on many lives.
This bipartisan legislation would restore the terminated pensions, making these hardworking retirees whole. The bill would make up the difference between the pension benefits earned by Delphi Salaried Retirees and what they received following the GM bankruptcy in 2009. This means beneficiaries who have already begun receiving benefits will receive a lump sum payment of the difference between what was actually paid by PBGC and would have been paid without the limitations, plus six percent interest. Retirees may pay income taxes on this lump sum over three years to ease the tax burden. All beneficiaries will receive their full earned benefit amount moving forward.
A transcript of Senator Portman’s remarks can be found below and a video can be found here.