Delphi SRSP and PSP Plans
Delphi Plan Review as of March 1, 2010
Introduction
With close to 40 investment options available, 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 funds, there is ample opportunity to build a
well-diversified portfolio for your 401(k) savings.
In this page of the website we include some “Featured Funds”
within the Delphi 401(k) plans. At the bottom of this page, we provide a table containing many of the funds
available within the SRSP and PSP plans with critical data on each fund
including style, risk, and past performance.
Throughout this page we provide other pertinent information concerning the plan
and links to other areas of our website that may be of interest.
Check this page for future updates to the SRSP and PSP plans
as well as news that affects Delphi Corporation.
Delphi Reinstates Company Match - March 1, 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"
Pyramis Active Lifecycle
Funds
The Pyramis Active Lifecycle fund family (Pathway
One) is 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 2000 to 2050. The way the Pyramis Active
Lifecycle 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.
Lifecycle 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. Lifecycle 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 roll 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 lifecycle 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 lifecycle funds offer a simple one-stop-solution, we continue
to advise participants to avoid lifecycle 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.
A Note on Institutional
Funds
One theme in the new SRSP and PSP is the use of
institutional funds in place of retail mutual funds. Here
the plan architects are moving to investment options with
lower internal operating expenses. (Institutional funds do
not have the marketing costs associated with retail mutual
funds that are ultimately passed along to the shareholders
in the form of fund management expenses.) The problem with
institutional funds, however, is the lack of publicly
available information about the funds that is so readily
available for retail mutual funds through the fund family’s
website or other data retrieval services. This was one of
the drawbacks of the Promark funds as investment options in
the SRSP and PSP. As with the Promark funds, because of the
lack of publicly available information, the institutional
funds within the plan are not detailed in our Fund Tables.
Fund Table
The Delphi SRSP and PSP fund table provides critical data on investment options
within the plan.
Delphi SRSP and PSP - Fund Table

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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