Bill Overview
Title: Susan Muffley Act of 2022
Description: This bill restores the full vested monthly benefits for eligible participants of certain pension plans that were sponsored by Delphi Corporation and terminated as a result of General Motors' bankruptcy in 2009. The Pension Benefit Guaranty Corporation (PBGC) must recalculate and adjust each plan participant's monthly benefits payment. The PBGC must also apply the recalculation to previously-made monthly payments and make a lump-sum payment for any additional benefits based on the recalculation. The bill establishes and provides appropriations to a fund for the payment of these benefits and specifies how the lump-sum payments are treated for tax purposes. Finally, the bill requires the PBGC to report on recommendations to ensure the long-term solvency of its insurance programs.
Sponsors: Rep. Kildee, Daniel T. [D-MI-5]
Target Audience
Population: Individuals whose pension plans were sponsored by Delphi Corporation and terminated due to GM's bankruptcy
Estimated Size: 18000
- The bill affects individuals whose pension plans were sponsored by Delphi Corporation and were terminated due to General Motors' bankruptcy in 2009.
- At the time of its bankruptcy, Delphi had approximately 20,000 salaried retirees impacted by the pension termination.
- The legislation is applicable only to those who are eligible participants in these specific pension plans.
- The PBGC is tasked to restore the full vested benefits, impacting the financial well-being of these individuals.
Reasoning
- The bill directly impacts around 20,000 Delphi retirees whose pensions were cut after the bankruptcy of General Motors.
- The policy can potentially improve the financial status of these retirees by restoring full pension benefits and providing retroactive lump-sum payments.
- Not all retirees will be equally impacted; those entirely dependent on their pensions might see a larger change in their wellbeing.
- Some individuals who have already adjusted their lifestyles and financial plans may see only small improvements.
Simulated Interviews
retired engineer (Ohio)
Age: 71 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I've been waiting for justice since 2009. This act will finally compensate for the losses.
- Getting back my full pension and lump sum could help me live more comfortably and travel occasionally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
retired human resources manager (Michigan)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- I feel relieved that we have advocates who still remember our plight.
- The lump sum and restored benefits will replenish some of my savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
retired production supervisor (Indiana)
Age: 78 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- This policy brings me peace of mind - it's been a tough adjustment since 2009.
- The additional funds will be crucial for medical and other unexpected expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
retired administrative assistant (New York)
Age: 58 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This is a tremendous relief, it reassures us of economic security in our later years.
- I plan to use the lump sum to address outstanding debts and increase savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
part-time consultant (Florida)
Age: 66 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- It's about fairness; this keeps the promise of a secure retirement.
- The restored pension will allow me to fully retire without financial worries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
retired line worker (Texas)
Age: 72 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The restoration of my full pension would tremendously ease my financial concerns.
- I can help my grandchildren with their education expenses again.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
retired quality control inspector (California)
Age: 63 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- This policy is crucial for those of us facing high medical costs.
- It will allow me to better manage my healthcare and still maintain a decent quality of life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 3 |
part-time educator (Illinois)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This restitution is crucial not just for me but for many retirees who were wronged.
- I'll use the additional income to strengthen my retirement savings and reduce my workload.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
retired logistics coordinator (Alabama)
Age: 69 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- I'm deeply grateful for the policy as it reinstates what was unjustly taken.
- This enables me to consider purchasing a small home again.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
retired project manager (Georgia)
Age: 59 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This allows me to eventually stop working and enjoy retirement with dignity.
- I plan to reinvest in my retirement fund and secure my future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $350000000 (Low: $300000000, High: $400000000)
Year 2: $320000000 (Low: $270000000, High: $370000000)
Year 3: $300000000 (Low: $250000000, High: $350000000)
Year 5: $270000000 (Low: $220000000, High: $320000000)
Year 10: $200000000 (Low: $150000000, High: $250000000)
Year 100: $50000000 (Low: $25000000, High: $75000000)
Key Considerations
- The overall financial stability of the PBGC could be affected depending on required payouts.
- Congress will need to approve appropriations to adequately fund this plan.
- Long-term viability of the PBGC’s insurance programs must be assured, potentially requiring policy changes on future funding.
- Public sentiment might be positively affected by the government's action to restore perceived lost benefits.