8-10: Delphi Salaried Retiree Pension Plan Trusteed by the PBGC—July 31, 2009

We Are Continuing to Seek Justice for the Delphi Salaried Retirees

 

    Delphi Salaried Retirees Association interim chair Den Black said today that the DSRA remains committed to challenge the termination of the Delphi Salaried Pension Plan.

 

    In a surprise turn of events today, the PBGC has withdrawn its Federal District Court action seeking appointment as trustee and approval to terminate the several Delphi pension plans, including those of salaried employees and retirees. Under the PBGC-Delphi trustee agreement the PBGC purports to become trustee of Delphi’s salaried and hourly defined benefit pension plans. The PBGC said it will terminate the plans effective July 31, 2009, and will have all of the rights and powers of a trustee specified in Employee Retirement Income Security Act (ERISA) or otherwise granted by law.  The PBGC’s ability to terminate a plan in this fashion is subject to significant questions under ERISA Law.

 

 

   That PBGC-Delphi agreement reportedly took place late last week, according to Black.

 

   “We are gathering more information on the reason and the significance of this action,” Black declared.  “We had no prior knowledge of the PBGC move to dismiss the action, and we are very concerned about an agreement that was struck without anyone looking out for our best interests.  We are not done in our efforts to protect what we had been promised, and what we have earned in our years of working for General Motors and Delphi.

 

Simultaneously, we are continuing to pursue the conduct of Congressional hearings, following the Congressional summer recess, which will require Treasury Secretary Geithner and the Automotive Task Force to justify the discriminatory treatment of the Salaried versus Hourly Pension Plan treatment when public funds are being utilized.

 

We will continue to keep you informed as we continue to seek “Justice” on your behalf.

 

We need the continued support of every Retired and Active Delphi Employee.