Delphi Retirees Pension Restoration Act

Increased Monthly Benefits: For eligible participants or beneficiaries of covered plans, the amount of monthly benefits will be increased to equal the full vested plan benefit (Section 2(a)(1)(A)).

Lump-Sum Payments for Past-Due Benefits: Eligible participants and beneficiaries will receive a lump-sum payment to cover the excess of their full vested benefits over what has already been paid (Section 2(a)(2)(B)).

Interest Compensation: The lump-sum payments will be increased to account for foregone interest at a 6 percent annual interest rate to reflect the underpayment of guaranteed benefits (Section 2(a)(2)(B)).

Survivor Protections: Surviving spouses of eligible participants may elect to have certain amounts included in their own gross income in the event of the participant's death (Section 2(d)(2)(B)).

Tax Implications for Lump-Sum Payments: Unless a taxpayer makes a specific election, the amount of a lump-sum payment will be included in their gross income ratably over a three-year period (Section 2(d)(1)).

Taxation of Deceased Taxpayers: If a taxpayer dies before the three-year period ends, any remaining amount that hasn't been included in gross income will be included in the gross income for the taxable year in which the death occurs (Section 2(d)(2)(A)).