Delphi Workers Spokesman: US Officials Violated Pension Law
29 Octobre 2009 - 3:49PM
Dow Jones News
A representative for Delphi Corp. (DPH) salaried employees is
expected to tell U.S. Senate lawmakers Thursday he believes
government officials violated federal pension law.
The charge stems from a deal the Pension Benefit Guaranty Corp.
reached with Delphi and the old General Motors during GM's
expedited bankruptcy. The deal of $70 million in cash from GM and a
$3 billion unsecured bankruptcy claim from Delphi relinquished
liens the PBGC placed on Delphi assets during Delphi's roughly
four-year bankruptcy stint.
According to prepared testimony he will give before a Senate
Health, Education, Labor, and Pensions Committee hearing to address
retirement security and inadequacies Thursday, Bruce Gump of the
Delphi Salaried Retiree Association believes the U.S. Treasury
Department and Auto Task Force pressured the government pension
insurer into this deal, which possibly violated the Employee
Retirement Income Security Act, or Erisa.
"They took this action knowing that they would have to assume
billions of dollars in unfunded pension liabilities and drastically
reduce the pensions of Delphi retirees," Gump is expected to
testify. "These illegal actions cost the Delphi retirees, both
hourly and salaried, billions of dollars in lost pension
annuities."
The PBGC liens, valued at nearly $3.4 billion, were meant to
protect Delphi pension plans but instead led to Delphi being unable
to sell its U.S.-based manufacturing assets to GM. Delphi was also
unable to sell its remaining offshore business.
But in order for the GM bankruptcy to move forward, all pending
business matters and the Delphi liens had to be settled. Gump said
the matter should not have been settled at the expense of salaried
workers' retirement funds.
"The U.S. Treasury set the 'standard of fairness' in the GM and
Delphi bankruptcies when they provided funds for full pensions and
reduced health-care insurance for the unionized workers," he said,
adding, "The U.S. Treasury and the Auto Task Force have
discriminated against us."
The Senate panel plans to hear testimony on retirement security
and what additional pension funding measures lawmakers should
consider. U.S. businesses have been freezing defined benefit plan
and threatening to reduce workforces to help pay for higher than
expected pension costs brought on by the economic downturn.
The hearing follows legislation introduced in the House of
Representatives on Tuesday by Reps. Earl Pomeroy (D, N.D.) and Pat
Tiberi (R, Ohio) that would provide additional relief to ease
pension plan sponsor's required minimum contributions.
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684;
darrell.hughes@dowjones.com