BorgWarner SRSP and PSP Plans

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.

In August 2009, the PBGC (Pension Benefit Guaranty Corporation) assumed responsibility for Delphi Corporation’s six pension plans. To date, the PBGC has issued benefit determination statements to current and future retirees for five of the six pension plans. The largest plan, the Delphi Hourly-Rate Employees Pension Plan, is the exception and is still in the calculation phase. You may check the status of each of the pension plans at the PBGC-Delphi Pension Plans Status link to the right.

Delphi Salaried Retirement Plan is the most recent of the Delphi pension plans (and largest to date) to have benefit determination statements issued. This group began receiving their determination statements in October 2015. The PBGC will continue to issue statements to salaried participants over the next several months.

To discuss your benefit determination statement and how this may impact your retirement plan, do not hesitate to contact us toll-free at 1-866-444-6246.

Fidelity has announced a policy change to the eligible securities allowed in the Fidelity BrokerageLink® account, as part of the Delphi Salaried Retirement Savings Program (SRSP) and Delphi Personal Savings Plan (PSP).

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.

Effective July 1, 2015, Delphi will be modifying the Interest Income Portfolio offered in the Delphi Salaried Retirement Savings Plan (SRSP) and Personal Savings Plan (PSP).

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.

Effective October 1, 2014, several changes, including fund allocations and expense ratios, will impact the core plan options and Target Retirement Date Portfolios in both the Delphi Salaried Retirement Savings Plan (SRSP) and Personal Savings Plan (PSP).

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 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.