1-27-10: DSRA is Handed a Preliminary Victory

DSRA is Handed a Preliminary Victory

With Respect to Our Efforts to

Prevent the PBGC From Reducing Your Pension Benefits

       The Federal District Court in Detroit handed the DSRA a preliminary victory on Tuesday, January 26.  We had asked the Court to prevent the PBGC from reducing our pension benefits during the period in which the Court resolves our challenge to the termination of our pension plan.  On Tuesday, the Court issued an extraordinary order telling the PBGC to hold the difference between our full pension payments and the reduced amounts the PBGC will pay us in what is known as an “escrow” account -- namely, a separate interest-bearing account.  The Court insisted that the PBGC do this so that, in the event we win in the end, we will all get full relief.  The Court said that the PBGC could avoid the escrow account requirement only if the PBGC were instead to stipulate on the record that it automatically will make everyone whole if the Court ultimately rules in our favor on the merits.  If the PBGC fails either to establish the escrow account or make the stipulation on the record to the Court, the Court indicated it will then issue an injunction entirely halting any PBGC reductions.

      This is a very promising development.  If the Court believed that our case lacked merit, it would not

 have taken this crucial measure to preserve our ability to obtain full, uninterrupted pension benefits in the event the Court agrees that the plan termination was unlawful.  In fact, the PBGC had asserted that nothing should be done by the Court at this stage because supposedly we were never likely to win on the merits.  The Court -- as shown yesterday -- plainly disagreed.  Our fight to save our pensions thus has resulted in an initial success.

 This could not, and would not have happened without:

a) The “World Class” efforts of our Miller Chevalier Legal Counsel     and

b) Your continuing monthly, Investments in your own well being and future.

It is absolutely imperative that you (and all you know) continue to support YOUR Legal Defense Fund in the coming months. We estimate that YOU could well LOSE over $250,000 over your lifetime IF we / YOU do NOT PREVAIL.

The Challenge: Invest Today, and Reach Out to (5) Others to do the same.

Send Checks to: DSRA, P.O. Box 64, Carmel, IN   46082

Invest in your future on the Website at:  www.delphisalariedretirees.org

WE WILL KEEP YOU INFORMED AS SOON AS MORE INFO IS AVAILABLE