Growing Our Base of Support

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Published: Wednesday, 02 October 2024 08:30

We certainly were disappointed in mid-September when the Susan Muffley Act (SMA) was not attached as an amendment to the Senate's version of the National Defense Authorization Act (NDAA).

Although SMA wasn’t "germane" to the NDAA, Senate rules permitted Sen. Brown to try to add the amendment.  We have concluded that all the amendments that are included in the NDAA are defense-related, while ours was not.  So we continue the fight.

Sen. Brown's gambit triggered meaningful discussions on Capitol Hill and drew expressions of support from several more key Senators and Representatives.

Multiple sources tell us that some Senate Republicans oppose SMA because they believe that Government should not be involved in private pension plans, and certainly not rescuing them.  Of course, we believe that Government became involved in private pension plans when Congress almost unanimously passed the law that created the Pension Benefit Guaranty Corporation (PBGC) in 1974.

We also believe that our traditionally well-funded retirement plan didn't need to be rescued in 2009, and doesn't need to be rescued now.  It's about righting a wrong.  And with increased support from key members in the Senate and House — and the election soon behind us — we move forward, a step at a time.

U.S. Government Wrongfully Terminated Delphi Salaried Retirement Plan in 2009

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Published: Tuesday, 10 September 2024 12:30

Please join the bipartisan support for the non-partisan Susan Muffley Act to restore the unfairly terminated pension plan for salaried workers from Delphi Corporation.

Susan Muffley Act – S.2277 / H.R.735

BACKGROUND:  Delphi Corporation was the largest parts supplier to General Motors (GM) in 2009 when the Obama Administration created an Auto Team to save the U.S. auto industry during the Great Recession.  Leading GM through an unprecedented 40-day bankruptcy, the Auto Team decided that Delphi’s traditionally well-funded salaried pension plan should be terminated while hourly pension plans should be saved. But the Auto Team’s mission clashed with the mission that Congress gave to the PBGC.

THE AUTO TEAM MISSION:  The Administration and the U.S. Treasury instructed a handful of temporary U.S. Government appointees to act in a “commercially reasonable” manner to save the U.S. auto industry.  The Special Inspector General for the TARP Program (SIGTARP) noted that no policies or procedures defined that term – “Without policies or procedures to define commercial reasonableness, Treasury used commercial reasonableness as a justification for all of its actions, even when those actions were based on other concerns.”  See [SIGTARP 13-003 “Lessons Learned”]

 This put the Auto Team’s mission at odds with Congress’ mission to the PBGC

The PBGC’s MISSION:  In 1974, Congress defined the purpose of the PBGC under 29USC§1302(a)(1) to “encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants” But the PBGC abandoned this role. [see appendix]

In 2009, to speed GM through bankruptcy, Government directed the PBGC to terminate the Delphi Salaried Retirement Plan.

Congressional intent for the PBGC to protect retirees was abandoned.

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read more with appendix ...

Proof That The Delphi Salaried Pension Plan was Traditionally Well-Funded

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Published: Friday, 13 September 2024 08:30

In June 2009, Watson Wyatt reported its analysis of the Delphi Salaried Pension Plan and summarized that "based on the valuation results that will be shown in the actuarial valuation report to determine funding requirements for the plan for the year beginning October 1, 2008, we have determined the 2008 AFTAP to be 85.62% as developed in the attached exhibit. The 2007 AFTAP was 86.9%."

Watson Wyatt letter June 30, 2009

We Have Been Heard – "Regular Order" on Our Issue Has Been Satisfied – 7 Hearings Already – Now We Need Action to Right This Wrong

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Published: Monday, 12 August 2024 08:30

read more, complete list of hearings