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Last Updated: Friday, 13 September 2024 15:53
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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%."
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Last Updated: Thursday, 12 September 2024 14:03
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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.
read more with appendix ...
