Susan Muffley Act of 2025

Bill Number: H.R. 1357
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Labor and Employment
Status: Introduced
Latest Action: 2025-02-13: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last Updated: 2026-04-13T22:20:58Z

AI-Generated Summary

Purpose of the Legislation

The Susan Muffley Act of 2025 aims to enhance pension benefits for participants and beneficiaries in specific terminated single-employer pension plans by increasing the guarantees provided by the Pension Benefit Guaranty Corporation (PBGC), a federal agency that insures certain private pensions. It ensures these individuals receive their full vested benefits (the full amount they earned under the plan) rather than limited guarantees, addressing shortfalls in past payments.

Key Provisions

Guaranteed Benefits Increase: For eligible participants and beneficiaries in six specified "covered plans" (e.g., Delphi Hourly-Rate Employees Pension Plan, PHI Non-Bargaining Retirement Plan), the PBGC must guarantee the full vested plan benefit upon plan termination, ignoring phase-in limits (gradual increase over time) and maximum benefit caps under the Employee Retirement Income Security Act (ERISA) of 1974.
Recalculation and Back Payments:
The PBGC must recalculate benefits for those already receiving payments and adjust future monthly payments.
Within 180 days of enactment, eligible individuals receive a lump-sum payment for past underpayments, including 6% annual interest on the shortfall.
Eligibility Criteria: Applies to participants or beneficiaries who are currently receiving payments or eligible for future ones, whose prior payments did not exceed full vested benefits, and who are not covered by certain 1999 agreements between General Motors and unions.
Funding Mechanism: Establishes the "Delphi Full Vested Plan Benefit Trust Fund" in the U.S. Treasury, funded by general appropriations to cover increased benefits and PBGC administrative costs.
Administrative and Tax Rules:
PBGC determinations are subject to the same review process as other benefit decisions.
Lump-sum payments are taxed ratably over three years (unless elected otherwise), with special rules if the recipient dies (e.g., income shifts to surviving spouses in some cases).
Regulations: PBGC, in consultation with the Treasury and Labor Secretaries, can issue rules to implement the changes.

Significant Changes to Existing Law

Modifies ERISA Section 4022 by removing benefit phase-in limits and maximum guarantee caps only for the specified covered plans, allowing full vested benefits without altering prior asset allocations or PBGC's general rules for other plans.
Introduces mandatory recalculations and lump-sum back payments with interest, which were not required under prior law for these limitations.
Creates a dedicated trust fund for these payments, separate from PBGC's standard funding, ensuring costs are covered by general Treasury funds rather than PBGC premiums or assets.

Potential Impacts

On Citizens: Provides financial relief to retirees and beneficiaries from the covered plans (primarily former Delphi and PHI employees), potentially increasing monthly pensions and delivering one-time lump sums to compensate for years of lower guarantees, improving retirement security for affected individuals.
On Government Agencies: Increases costs for the PBGC (administrative burden) and Treasury (funding via appropriations), with no specified cap on expenditures; may strain federal budgets but is targeted to a finite group.
On International Relations: No direct impact, as this is a domestic pension insurance matter focused on U.S. workers in specific U.S.-based companies.

Main Stakeholders Affected

Primary Beneficiaries: Eligible participants and beneficiaries of the six covered plans, including retired hourly and salaried workers from Delphi Corporation (an auto parts manufacturer) and PHI (a former subsidiary), who may see higher ongoing payments and back pay.
Government Entities: PBGC (handles recalculations and payments), U.S. Treasury (funds the trust), and Department of Labor (consults on implementation).
Others: Taxpayers (via general fund appropriations); unions and former employers like General Motors (indirectly, as exclusions apply to certain union agreements).

Notable Legal, Constitutional, or Political Implications

Legal: Ensures equal treatment under PBGC review processes but creates exceptions to ERISA's uniform guarantee limits, potentially setting a precedent for future targeted relief in distressed plans; tax provisions align with Internal Revenue Code rules for deferred income to avoid large one-time tax burdens.
Constitutional: No apparent challenges, as it involves Congress's authority over interstate commerce and pension regulation without infringing on individual rights.
Political: Bipartisan sponsorship (from both parties) highlights support for worker protections in manufacturing sectors; could influence broader pension reform debates by demonstrating federal willingness to fund specific legacy plan shortfalls, though limited scope avoids widespread fiscal controversy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Turner, Michael R. [R-OH-10]

Cosponsors (40)

Rep. Kaptur, Marcy [D-OH-9], Rep. Tenney, Claudia [R-NY-24], Rep. Moore, Gwen [D-WI-4], Rep. Webster, Daniel [R-FL-11], Rep. Smith, Adam [D-WA-9], Rep. Rulli, Michael A. [R-OH-6], Rep. Scott, Austin [R-GA-8], Rep. Baird, James R. [R-IN-4], Rep. Bergman, Jack [R-MI-1], Rep. Thanedar, Shri [D-MI-13], Rep. Balderson, Troy [R-OH-12], Rep. Steil, Bryan [R-WI-1], Rep. Pocan, Mark [D-WI-2], Rep. Joyce, David P. [R-OH-14], Rep. McDonald Rivet, Kristen [D-MI-8], Rep. Spartz, Victoria [R-IN-5], Rep. Landsman, Greg [D-OH-1], Rep. Frankel, Lois [D-FL-22], Rep. James, John [R-MI-10], Rep. Taylor, David [R-OH-2], Rep. Tlaib, Rashida [D-MI-12], Rep. Stevens, Haley M. [D-MI-11], Rep. Frost, Maxwell [D-FL-10], Rep. Morelle, Joseph D. [D-NY-25], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Davidson, Warren [R-OH-8], Rep. Carson, André [D-IN-7], Rep. Moolenaar, John R. [R-MI-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Huizenga, Bill [R-MI-4], Rep. Kelly, Mike [R-PA-16], Rep. Strong, Dale W. [R-AL-5], Rep. Guest, Michael [R-MS-3], Rep. Escobar, Veronica [D-TX-16], Rep. Scholten, Hillary J. [D-MI-3], Rep. Harder, Josh [D-CA-9], Rep. Dingell, Debbie [D-MI-6], Rep. Beatty, Joyce [D-OH-3], Rep. McClain, Lisa C. [R-MI-9], Rep. Carey, Mike [R-OH-15]

Recent Actions

2025-02-13: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-13: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-13: Introduced in House
2025-02-13: Introduced in House

Bill Versions

Susan Muffley Act of 2025 — issued 2025-02-13 — PDF (11 pages)