DELPHI: Salaried retirees gain support of 22 congressmen in fight for benefits

Delphi

June 29, 2009

By Joe Olenick<br><a href="mailto:joe.olenick@lockportjournal.com">E-mail Joe</a> The Lockport Union-Sun %26 Journal Mon Jun 29, 2009, 09:43 PM EDT

Including U.S. Reps. Chris Lee, R-Clarence and Brian Higgins, D-Buffalo, 22 Congressional representatives are coming to the aid of Delphi salaried retirees.

In a letter sent to Treasury Secretary Timothy Geithner, the Congressional representatives are asking Geithner to direct the department’s federal auto task force to release all documents concerning a proposal to default the retirees’ pensions to the Pension Benefit Guaranty Corp. The PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974 and covers some of the retirement income of about 44 million Americans. It encourages the continuation of pensions and does not receive funds from taxes.

Moving the pensions to the PBGC could reduce the pension payments retirees receive, the letter said, affecting about 15,000 former Delphi workers nationwide.

“Through referral to the PBGC, salaried retirees’ pension payments are likely to be cut drastically, as much as 70 percent by some estimates,” the legislators said in the letter.

Delphi was allowed to stop salaried retiree pension payments by April 1. The letter to Geithner said General Motors agreed to assume Delphi’s hourly worker pensions and it was unfair to treat two groups of employees who worked together for so many years so differently. Delphi spun off from GM in 1999 as a separate parts company and has been in bankruptcy since 2005. The company announced earlier this month it has come to an agreement that will allow it to emerge from bankruptcy protection. The final hearing is set for July 23.

The letter said the retirees and the American public, which owns 60 percent of GM, both deserve to know the background of the decision.

“They deserve a full and public explanation of how this inequitable decision was made,” the letter said.

The explanation would include all pertinent documents, written communications and memorandums among the auto task force, GM, Delphi and their representatives and agents.

Den Black, interim chairperson of the Delphi Salaried Retiree Association, said the organization was very appreciative of the letter by Lee and the other representatives. But more support is needed.

“The situation has become critical,” he said. “We need more congressional and senatorial representatives, especially from Delphi states, to step forward to protect their constituents. Immediate steps must be taken to prevent the pension default. This is a precedent-setting case that could determine outcomes for millions of other retirees whose former employers are under bankruptcy protection.”

Contact reporter Joe Olenick at 439-9222, ext. 6241.

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Delphi

Still no answers for Delphi retirees
Twenty-two thousand Delphi Corp. retirees found out 16 months ago their pensions were being turned over to a federal agency. In July 2009, the Pension Benefit Guaranty Corp. took control of those pensions, which meant possible cuts of anywhere from 30 percent to 70 percent in the retirement plans.
Hourly employees faced the same situation, except General Motors agreed to top off those pensions. Salaried retirees did not have their pensions topped off by anyone.
Now they want to know why. Letters, testimonies and speeches have asked the U.S. Treasury Department, the department’s Auto Task Force and the Obama Administration for information on that decision was made.

August 1, 2010 1 Photo
Delphi retirees group came together quickly
Salaried workers and retirees lost big chunks of their pensions in July 2009, and almost as quickly, the Delphi Salaried Retiree Association was formed.
The DSRA actually started forming when it was announced Delphi was eliminating health care and life insurance benefits for salaried retirees as of April 1, 2009. There are roughly 22,000 salaried Delphi retirees nationwide.

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