Now let's take a look at how the legal limits will affect the benefits in your plan. The Delphi Hourly-Rate Employees Pension Plan offered two different kinds of retirement benefits, depending on when you were hired.
If you were hired before May 4, 2003, your benefit is a traditional retirement benefit based on years of service and a benefit rate.
If you were hired on or after May 4, 2003, your benefit is called a Cash Balance benefit.
The examples in this section address the traditional type retirement benefits. Since the Cash Balance benefits are unlikely to be affected by the legal limits, we will not address them in detail here. If you are receiving a Cash Balance benefit, you will probably continue to receive the same benefit from PBGC that you did before your plan terminated.
For those of you who were hired before May 4, 2003, your plan offered several different types of retirement based on your years of service with the company and your age when you stopped working for the company.
There is 30 Year Retirement for those with at least 30 years of service with the company regardless of age, and Rule-of-85 Retirement for those at least age 55 whose age plus years of service total 85 or more.
These retirement types provided two retirement benefits: the Basic Benefit, which is paid in a reduced amount until age 62 and 1 month, and unreduced thereafter; and a supplement payable until age 62 and 1 month. For the 30 Year Retirement, this supplement is called the "Early Retirement Supplement." For the Rule-of-85 Retirement, it is called the "Interim Supplement."
Your plan also offered Voluntary 60 & 10 Retirement for those who worked until age 60 and had at least 10 years of service. This retirement type provided 2 retirement benefits: the Basic Benefit, which is reduced for payment before age 62 – this reduction is permanent; and a supplement called the "Interim Supplement" until age 62 and 1 month.
Your plan also offered Mutually Satisfactory Retirement, or MSR, for those with at least 10 years of service who: worked for Delphi until age 55, and then were permanently but not totally disabled; worked for Delphi until age 55, and then were permanently laid off; or worked for Delphi until age 50, and then were permanently laid off due to a plant closing.
This retirement type provided two retirement benefits: the Basic Benefit, which is not reduced for payment before age 62, and a supplement called the "Temporary Supplement" until age 62 and 1 month.
And, for those with at least 10 years of service, if the company determined that you were totally and permanently disabled, the plan offered a Total and Permanent Disability Retirement, or T&PD.
This retirement type provided two retirement benefits: the Basic Benefit, which is not reduced for payment before age 62, and a supplement, called the "Temporary Supplement," until age 62 and 1 month. However, this supplement will stop earlier if you start receiving disability payments from Social Security.
Your plan also offered two types of retirement that do not include any supplement.
There is Normal Retirement for people who worked until age 65, and Deferred Vested Retirement for those with at least 5 years of service who aren’t eligible for any other type of retirement.
These types of retirement provided one retirement benefit: the Basic Benefit. The Basic Benefit is based on your years of service times the benefit rate. For Deferred Vested retirees, it's reduced if you start receiving your benefits before age 65, your Normal Retirement Age.
