Some Delphi Salaried Retirement Plan (DSRP) participants may be receiving PBGC Overpayment (“Clawback”) or Underpayment notifications.
In general, clawbacks apply to those who had been receiving pension payments at the time the PBGC took over the DSRP on July 31, 2009. From July 2009 through approximately March 2010, participants continued to receive the same pension payment amount as they had been receiving prior to the PBGC takeover. From April 2010 until the recent receipt of final benefit determination statements, the PBGC provided estimated monthly benefit payments (typically lower amounts). With the issuance of final benefit determination statements, the PBGC is asking for the return of the difference in the pension payments for those first 6 to 8 months.
Underpayments apply to those meeting the fully vested entitlement requirements as of July 31, 2006. Underpayments resulted when the PBGC’s estimated monthly benefit payment was lower than the final benefit determination statement and those recipients may be eligible for a lump sum back payment. Other factors may apply to a clawback or an underpayment situation.
To discuss the impact of your final benefit determination statement to your retirement plan or your clawback or underpayment notification, if applicable, do not hesitate to contact us toll-free at 1-866-444-6246.