Aptiv SRSP and PSP Plans

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.

The deadline for Delphi salaried employees to elect the disbursement option of their 2012 Annual Incentive Plan (AIP) payment is February 14^th. 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 Planners^TM.

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.

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 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 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.

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 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.

Delphi Automotive announced earlier in the year its intention to execute a spin-off of its Powertrain Systems segment into a new, independent publicly traded company. More recently, the company announced that the Powertrain Systems segment will be named “Delphi Technologies” and the remaining portion will be named “Aptiv”.

Those transferring to Delphi Technologies have been notified of the transition to a new 401(k) plan - “Delphi Powertrain Technologies Salaried Retirement Savings Program (SRSP)” – which offers a new set of investment options as compared to the current Delphi SRSP. The BrokerageLink option will remain intact.

On November 30^th (4 pm EST), the investment options offered through the Delphi SRSP will no longer be available. As a result, current account balances and future contributions will transfer to the new investment options in the Delphi Powertrain Technologies SRSP. Also with this transition, some features of the Delphi SRSP will continue to the Delphi Powertrain Technologies SRSP, however some will not. In addition, the fee structure is changing with the new plan.

To discuss these changes 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.