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  Delphi SRSP and PSP Plans

Replacement of the Promark Income Fund Frequently Asked Questions

Health Coverage Tax Credit for PBGC Recipients - Update

Delphi HSA Model Portfolios

PBGC Frequently Asked Questions

Funding Health Care Costs After Age 65

For Your Interest

ABC News Video: "Automotive workers seek advice on buyouts"Video Link

The Oakland Press
Delphi retirees could see more expensive health care coverage if Congress doesn't extend credit

The Detroit News
IRS helps cover health care costs

The Oakland Press
Feds take control of Delphi pension funds

Dow Jones Newswires
Adviser Fights Fear About GM With Fact

USA TODAY
Workers offered Roth 401(k)s

Introduction

With thousands of investment selections now available through the BrokerageLink option, the Salaried Retirement Savings Program (SRSP) for salaried employees and Personal Savings Plan (PSP) for hourly employees are among the best in the country. With this large number of investments, there is ample opportunity to build a well-diversified portfolio for your Delphi 401k savings.

Please visit our “Fund Commentary” section below for information on specific funds and/or fund types within the SRSP and PSP accounts.

To the right you will find articles of interest as well as news and updates to Delphi employee and retiree benefits. Check this page for future updates to the SRSP and PSP plans, as well as news that affects Delphi employees and retirees.


News and Updates

Delphi SRSP & PSP Plan Changes – September 2013

Delphi announced several modifications to the Salaried Retirement Savings Program (SRSP) and Personal Savings Plan (PSP). State Street Bank and Trust, currently the plan’s trustee, will be replaced with Fidelity Management Trust Company. This will cause a temporary “blackout period” for participants.

Along with this transfer, certain State Street Global Advisors (SSgA) index funds will be replaced by similar index funds provided by Northern Trust. One of the Small-Mid Cap Equity Value Portfolio managers, Lord Abbett, will be replaced by Huber Capital Management. Portfolio percentages are also being adjusted in this portfolio.

Please feel free to contact us toll-free at 1-866-444-6246 if you have questions on how these changes could impact your investment strategy.

Delphi AIP Payout – February 2013

The deadline for Delphi salaried employees to elect the disbursement option of their 2012 Annual Incentive Plan (AIP) payment is February 14th. Current Salaried Retirement Savings Program (SRSP) contribution rates (pre-tax, after-tax, Roth, Catch-up) will be automatically applied to the AIP payment unless employees change these rates.

Keep in mind, the IRS limit for pre-tax contributions can not exceed $17,500 for 2013 (or $23,000 if age 50 or older). After reaching the pre-tax threshold employees may still contribute to the SRSP. Pre-tax payroll contributions will automatically spill over as after-tax. Delphi will continue to match $0.50 for every dollar up to 7% of base salary as long as payroll contributions are maintained throughout the year.

As a reminder, salary employees receive retirement contributions to their SRSP of 4%. This retirement contribution is in addition to payroll contributions and Delphi’s company match. The total IRS limit for contributions to the SRSP, which include pre-tax and after-tax payroll contributions, Delphi company match, and retirement contributions is $51,000 (or $56,500 if age 50 or older) for 2013.

If you have questions on how the election of the AIP payout to the SRSP could impact your contributions for the remainder of 2013, or you want to maximize Delphi’s company match, contact Mainstay Capital Management toll-free at 1-866-444-6246 to speak with one of our Certified Financial PlannersTM.

Delphi 401(k) Plan Overhaul – March 2012

The Delphi Salaried Retirement Savings Plan (SRSP) and Personal Savings Plan (PSP) underwent a significant overhaul effective March 30, 2012. Changes included a new core investment line up and the introduction of a brokerage account option for participants. This brokerage account option makes thousands of investment options available to participants.

If you have questions about the plan overhaul, the new core options, or whether you should utilize the brokerage account option, contact Mainstay Capital Management toll-free at 1-866-444-6246.

Replacement Of The Promark Income Fund – February 2011

Delphi has announced that the Promark Income Fund will be removed from the SRSP and PSP investment menu. It will be replaced with the PIMCO Interest Income Fund. This change will be effective at the close of business on March 23, 2011. Reference our Frequently Asked Questions page for further information on this upcoming change and the PIMCO Interest Income Fund.

Delphi SRSP & PSP Fund Changes Announcement – October 2010

Delphi has announced upcoming changes to the investment options in the Salaried Retirement Savings Program (SRSP) and Personal Savings Plan (PSP). This announcement is the result of a change in the company contracted to manage the investment assets held in the Delphi SRSP and PSP. These revisions represent the first step in a series of changes planned by Delphi for the SRSP and PSP. For more details, see our article “Delphi SRSP & PSP Fund Changes”.

Delphi Reinstates Company Match - March 2010

Delphi has announced the reinstatement of the 3.5% Company Match in the Salaried Retirement Savings Plan (SRSP). Effective March 1, 2010, Delphi will contribute an additional amount equal to $.50 for every dollar of your savings up to 7.0% (e.g. 3.5%) of your eligible compensation that you contribute into the SRSP. This Company Match will be over and above the 4.0% automatic contribution that you are currently receiving into your SRSP.

While your personal retirement plan may already call for a contribution level higher than 7.0%, all participants should contribute a minimum of 7.0% to the SRSP to maximize the company contribution to their account.

Delphi and the PBGC - November 2009

August 10, 2009 the Pension Benefit Guaranty Corporation (PBGC) assumed responsibility for the pension plans of 70,000 workers and retirees of Delphi Corporation. Delphi sponsors six defined benefit plans for its workers, including the Delphi Salaried Retirement Savings Program (SRSP) and the Delphi hourly Personal Savings Plan (PSP). All six plans have been assumed by the PBGC.

Although many current pension recipients will eventually see a change in their pension payment, it could take the PBGC several months before determining an estimated pension benefit for Delphi pension recipients. During the time that the PBGC is working to determine the estimated pension payment, recipients will continue to receive the same pension payment they had been receiving prior to the PBGC takeover. Once the estimate is determined, it could then take another several years before the PBGC fully reviews the plan and finally determines all benefit amounts. Any overpayments or shortfalls created by the estimated payments recipients received over this timeframe will be made up by adjusting the final payment to be received from the PBGC.

Delphi Salaried Retirement Savings Program (SRSP)

Delphi has made changes to the retirement plans that have increased the importance of the 401(k) plan and individual savings for an employee’s retirement. The changes, coinciding with the freeze of the traditional pension, include renaming the salaried 401(k) plan, a company contribution based on salary, and a company matching contribution.

Delphi’s Savings Stock Purchase Program (SSPP) has been renamed the Salaried Retirement Savings Program (SRSP) to better emphasize the primary purpose of the plan; to help employees save for retirement. The SRSP includes a company contribution equal to 4% of eligible salary. Additionally, Delphi will match $0.50 on each $1.00 of employee payroll contributions up to 7% of eligible salary for those employees with less than 25 years of service and up to 9% of eligible salary for those employees with more than 25 years of service.

As you consider how much you should contribute to the plan, it is very important that you understand how to stay within the annual IRS limits for contributions to the plan. Mainstay Capital Management can help you avoid missing out on valuable employer contributions by showing you how much you can safely contribute.

Request a free copy of Mainstay Capital Management's "Guide to Investing in the Delphi SRSP"


Fund Commentary

Target Retirement Date Funds

The Target Retirement Date funds (Pathway One) are designed for those participants who wish to base their asset allocation decision on a specific target date, typically aligning the account with the fund that most closely matches their projected retirement date.

Eleven of these funds are included in the new plan, with 5-year incremental targets from 2010 to 2055. The way the Target Retirement Date funds are designed, the further away the target date, the more aggressive the asset allocation, conversely, the closer the date, the greater the emphasis on preservation of capital in the asset allocation.

Target-Date funds hold some appeal in that they are simple to explain and administer. While this approach is unique, we believe the asset allocation decisions provided by these funds are crude at best. Target-Date funds attempt to make decisions about asset allocation based solely on a target date. An investor’s tolerance for risk and financial goals are other key factors that should largely play a role in determining investment strategy and asset allocation. Additionally, they leave no room for the fund manager to tactically adjust the strategy based on specific opportunities within the financial markets or in response to prevailing market conditions.

The returns realized in these commingled vehicles are diluted by a rigid adherence to mechanical allocation parameters. These parameters may prove to be shortsighted and inappropriate for everyone participating in the pool. The real world changes every day, yet proponents of Target-Date funds expect someone to stick to a single game plan for as much as 40 years, whether interest rates are rising or falling, or whether the economy is in expansion or recession. While Target-Date funds offer a simple one-stop-solution, we continue to advise participants to avoid Target-Date funds and retain the flexibility to proactively adjust their portfolios as needed.

Please reference "Target-Date Funds Face Regulation", published in The Wall Street Journal.


If you have any questions concerning our website or your Delphi 401(k) account, please feel free
to contact us using the following email link: Mainstay@mainstaycapital.com
or call us toll-free at 1-866-444-6246.

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