Delphi SRSP and PSP Plans
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 2015
Effective immediately, Fidelity is removing certain security types in an investment category that may generate unrelated business taxable income (UBTI). Because these investment types can create taxable events, they are inconsistent with the objective of the Delphi 401(k) plan, that is, to save in a tax-deferred manner for retirement.
If you currently hold a security of this type, you will be asked to liquidate these existing holdings. Dates have been established in which new purchases will be blocked and existing holdings will begin automatic liquidation should you not proactively redeem the investment position(s).
To discuss this change to the Delphi 401(k) plan and how this may impact your current portfolio allocation, do not hesitate to contact us toll-free at 1‑866‑444‑6246.
Delphi SRSP & PSP Plan Changes – May 2015
As a result of this fund modification, the Retirement Income and Retirement 2010 portfolios will also be impacted, as they invest a small percentage of their assets in the Interest Income Portfolio.
To discuss this recent change and how it may impact your investment allocation, do not hesitate to contact Mainstay Capital Management toll-free at 1‑866‑444‑6246.
Delphi SRSP & PSP Plan Changes – August 2014
Additionally, effective January 1, 2015, based on recent legislation and IRS guidelines, Delphi is expanding the Roth conversion feature in the SRSP and PSP to incorporate all vested assets, including both pre-tax and after-tax monies. This feature can allow for more flexibility in managing one’s tax strategy up to and throughout retirement.
To discuss these recent changes, how they may impact your investment allocation, or if the Roth conversion might be right for your personal situation, do not hesitate to contact Mainstay Capital Management toll-free at 1-866-444-6246.
Delphi Fund Change Announcement –
To discuss where to look for an alternate investment option within the Delphi BrokerageLink, do not hesitate to contact Mainstay toll-free at 1-866-444-6246.
Delphi SRSP & PSP Plan Changes –
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 –
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 –
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
Replacement Of The Promark Income
Fund – February 2011
Delphi SRSP & PSP Fund Changes
Announcement – October 2010
Delphi Reinstates Company Match
- March 2010
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.
and the PBGC - November 2009
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
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"
Target Retirement Date Funds
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.
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10775 South Saginaw St., Grand Blanc, Michigan 48439
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