Treasury Clearly Involved in Decision that Terminated Delphi Salaried Workers’ Pensions

Investigation: Treasury Clearly Involved in Decision that Terminated Delphi Salaried Workers’ Pensions and Is Withholding Information from the Public

Documents Show Both Hourly & Salaried Workers Considered, Before Salaried Workers Were Dumped

Release: Wednesday, October 03, 2012 

Washington, DC - On August 13, 2012, Ways and Means Chairman Dave Camp (R-MI) sent document requests to the White House, Department of Treasury (Treasury), and Pension Benefit Guarantee Corporation (PBGC) to determine whether political concerns influenced the decision-making that resulted in the Obama Administration topping off the pensions of Delphi’s union beneficiaries while terminating its non-union pensions ~ the PBGC provided what appears to be a nearly complete response, while Treasury provided an incomplete response. The White House provided no documents, but claimed Treasury was responding on its behalf. The more than 5,000 pages of documents reviewed to date raise new questions about the Administration’s involvement in decisions affecting Delphi pension beneficiaries. Some of the key findings include:

  • Treasury withheld documents from its production without notice or explanation.
  • Officials involved in negotiations discussed General Motors (GM) assuming both Delphi salaried and hourly pension plans as late as May 28, 2009. Following extensive Treasury involvement, the decision was made to only supplement hourly pension plans.
  • Treasury and PBGC emails suggest that top officials at Treasury were heavily involved in the decision to terminate the Delphi pensions through the convening of meetings, providing comments on draft settlement agreements, and conferring with GM and Delphi officials apart from PBGC.

Chairman Camp stated, “Treasury was clearly in the center of the decision to terminate the pensions of Delphi’s salaried workers."

House Ways and Means Committee Release | Dayton Daily News - Treasury Clearly Involved | Washington Examiner - Delphi decision involved Obama officials | Detroit News - Rep. Camp wants more U.S. documents | Daily Caller - Treasury, Obama officials ‘clearly involved’

DSRA comment on Senate and House bills introduced by Sen. Sherrod Brown and Rep. Tim Ryan

The DSRA, on behalf of all Delphi salaried retirees, thanks Sen. Sherrod Brown and Rep. Tim Ryan for their recently introduced bills to resolve the Delphi salaried pensions issues using government/taxpayer funds from the potential sale of GM stock.  However, the DSRA emphasizes that viable proposals have already been submitted to the Obama Administration to resolve this issue immediately and without taxpayer funding.  Further, while the legislation just introduced is unlikely to pass during this term, and is subject to the government sale of GM stock, the DSRA proposals could be implemented immediately.  As we have done for the last three years, we continue to wait for a meaningful response from the Obama Administration.

Rep. Donnelly (IN) Advocates on Behalf of Delphi Salaried Retirees

South Bend, Ind. - Sep 18, 2012 - Congressman Joe Donnelly sent a letter to the Treasury Department and the Pension Benefit Guaranty Corporation (PBGC) on behalf of Delphi salaried retirees whose pension benefits were cut by as much as 70 percent. Donnelly’s letter requests that the Treasury and PBGC be completely transparent regarding the federal government’s role in any decisions relating to the retirees’ pensions and that the Treasury and PBGC consider a proposal developed by the Delphi Salaried Retirees Association (DSRA) to restore lost benefits.  Rep. Donnelly release| Rep. Donnelly letter

Sen. Sherrod Brown and Rep. Tim Ryan Introduce New Bill To Restore Full Pensions of Delphi Retirees

Legislation Would Transfer Certain Proceeds from Sale of Government Stock of General Motors to Supplement Payments to Delphi Retirees

Thu Sep 13 2012 | Washington D.C.  U.S. Sen. Sherrod Brown (D-OH) and Rep. Tim Ryan (OH-17) today introduced legislation that would restore the full pensions of Delphi retirees. The bills (Senate and House) would transfer certain proceeds from the sale of government stock of General Motors to a fund at the U.S. Treasury Department that would supplement payment to the Delphi retirees.  Note: The DSRA has also submitted proposals to the current administration that would resolve this issue without the use of taxpayer/TARP funds.  Sen. Brown release | Sen. Stabenow support | The Vindicator/ | Automotive News