April 30 2013
The PBGC has published this undated information believed to have been released today:
Starting June 1, about 6,000 Delphi salaried retirees will see a change in how they receive their retirement benefit. They will continue to receive the same benefit amount.
If you are one of the affected retirees, PBGC sent you a letter on April 30. The letter explains that instead of a single monthly benefit payment, you will now receive two payments each month. ~~ Read full PBGC FAQ
DSRA is taking legal advice regarding the significance and impact of this change but has no further information to provide on this subject at this time. Meanwhile, all questions should be directed to the PBGC via their contact page.
January 29 2011
When DSRA members receive their annual 1099-R from the PBGC for pension payments, the PBGC does NOT provide a breakdown into taxable pension payments and the non-taxable “return of contribution” payments which are related to personal Part B contributions. Delphi provided that service with the breakdown on the 1099-R, but the PBGC assumed the pension plans the responsibility to split taxable and non-taxable now rests with the retiree. Failure to calculate the correct non-taxable and taxable portions of pension payments could result in payment of higher taxes than are actually due.
DSRA has provided an eblast to members each year with guidelines for reporting taxable and non-taxable payments, the latest information was provided in an eblast to members on 3/10/2014; members should check their email for updated information please.
Please note this information is provided for guidance and information to DSRA members who are drawing their pensions from the PBGC. This is provided in the absence of any direction on this subject from the PBGC. DSRA cannot provide any additional information or assistance on this subject or on any related personal tax related matters. All members are advised to contact their tax preparers for specific advice and calculations. DSRA is neither responsible nor liable for calculations that result from using the information provided.