PBGC Frequently Asked Questions

Q. Delphi was created in 1999 as a spin-off from General Motors. Why doesn’t GM take back the pension plans?
A. GM’s recent bankruptcy reorganization has fundamentally altered their relationship with Delphi.  As recently as last year, GM stated that it would accept responsibility for the continued viability of the Delphi hourly pension plan, as part of an effort to help its former parts division emerge from bankruptcy.  Today, GM states that it cannot afford this additional financial burden.

Q. Will the PBGC reduce benefits to Delphi retirees?
A. The PBGC can pay benefits only up to the limits set by law.  Those limits are more likely to affect early retirees and those who receive supplemental benefits.  Some individuals will see reduced benefits.

Q. In 1999 GM agreed to make up any lost benefits to Delphi hourly plan workers if the hourly plan terminated and was taken by the PBGC. How does that GM guarantee fit in with the PBGC’s benefits?
A. They are separate matters.  The PBGC will assume Delphi’s pension benefits guided by the limits set by law.  They are not responsible for this guarantee made in 1999 by GM.

Q. I am a salaried plan retiree.  Will GM make up my lost benefits as well?
A. The PBGC is not aware of any agreement by GM to pay additional benefits to Delphi salaried plan retirees. GM’s 1999 agreement only covered Delphi hourly employees.

Q. In 2008, GM took back some of the Delphi hourly plan.  Some people who had been receiving a benefit from Delphi now receive their benefit from GM. What happens to them?
A. They are now part of the GM hourly plan, and are not affected by what happens to Delphi.

Q. Does PBGC pay health benefits for retirees?
A. No. PBGC was established to insure benefits from defined benefit pension plans, and does not pay health or other retirement benefits.

Q. My pension plan features a temporary supplement to “bridge” the difference between my actual retirement age and social security retirement age. Does PBGC pay temporary supplements?
A. PBGC cannot pay you more than your plan would have provided had you retired at your normal retirement age with a straight-life annuity. Some of your supplement may be covered by the PBGC but it is likely that the amount of supplement will be reduced. Contact Mainstay Capital Management, toll-free at 1-866-444-6246 for further explanation.

Q. I became eligible for additional benefits when the facility where I worked was shut down. Are the additional benefits guaranteed?
A. The additional benefits may not be fully guaranteed if the shutdown occurred after July 26, 2005.  The PBGC’s phase-in rule would treat these additional benefits as if they were first adopted by the plan on the date of the layoff or shutdown.

Q. I retired under a recent early retirement incentive program. Does PBGC guarantee my early retirement benefit?
A. If you are receiving higher benefits because of this early retirement incentive, the additional benefits may not be fully guaranteed.

Q. If my plan is well funded, will I receive a larger pension than the amount PBGC can guarantee?
A. The PBGC guarantees basic benefits according to federal law and does not consider whether a plan is well funded or underfunded.