Hearing set on Delphi retirees

Delphi salaried retirees saw their pensions cut by 30 to 70 percent when the pensions were transferred to the federally backed PBGC during bankruptcy proceedings in July 2009
MCT Regional News
Jun 8, 2013

A U.S. House committee is returning to Dayton for a congressional field hearing Monday on how the pensions of Delphi salaried retirees were treated.

The House Oversight & Government Reform Subcommittee on Government Operations will hold the hearing at Sinclair Community College, Turner’s office said Thursday. The hearing is titled: “The Delphi Pension Bailout: Unequal Treatment of Retirees.”

The same committee held a hearing at Sinclair in November 2011. Vincent Snowbarger, Pension Benefit Guaranty Corp. deputy director for operations and a former PBGC acting director, testified at that hearing.

This hearing will start at 10 a.m. and will have testimony from local residents Tom Rose and Mary Miller, among others. Administration and PBGC officials were not on the hearing’s witness list Thursday.

“We sought them, and they were uncooperative,” Turner told the Dayton Daily News.“We’re not giving up, ” Turner added.

A U.S. Treasury spokesman said Treasury officials were not invited to testify at the hearing. PBGC officials have said Congress itself mandates how much it can pay retirees whose pensions the agency oversees.

Turner said the matter is approaching a series of important milestones, both in the retirees’ federal lawsuit against the PBGC and in an investigation of the matter by the special inspector general for the troubled asset relief program.

Turner said a federal court has ordered the PBGC to comply with discovery requests from attorneys representing Delphi salaried retirees. A Treasury spokesman disagreed with that, but the lawsuit’s case docket shows that in March 2012, the federal court in Detroit ordered the PBGC “to provide full and complete responses” to plaintiffs’ document requests, including requests for all documents “produced or reviewed by the PBGC since Jan. 1, 2006.”

“The litigation continues to gain momentum and steam, so we expect to get an update on the issues,” Turner said.

Delphi salaried retirees, including hundreds in the Dayton area, saw their pensions cut by 30 to 70 percent when the pensions were transferred to the federally backed PBGC in July 2009, while auto parts producer Delphi was in Chapter 11 bankruptcy protection. Delphi emerged from bankruptcy a few months later.

At the same time, General Motors chose to bolster the pensions of retirees represented by unions. The salaried retirees say they do not begrudge their union-represented counterparts their full pensions, but say they want similar treatment.

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By Thomas Gnau - Dayton Daily News, Ohio (MCT)

©2013 the Dayton Daily News (Dayton, Ohio)

Visit the Dayton Daily News (Dayton, Ohio) at www.daytondailynews.com

Distributed by MCT Information Services

Comments

kURTje

Welcome to the working world.

gene44870

One can only hope that the retirees get what they have paid into and the loss funds due to the bankruptcy, nd to be honest about it , the retirement should not of even come in to play due to it not being no ones money but the retirees
The people that worked at these companies have worked there to prepare for help provide them for retirement and now the company wants to take that away , and thats wrong

JACKEL

If it wasn't for the engineers designing the product,there wouldn't be a job for the union hotshots.You knew Bozo would take care of his voters !

Contango

The plan in question is a defined benefit plan, the co. pays into it, NOT the participants.

If one is already receiving benefits, the mo. benefit amt. doesn't change.

The retirees in question could NOT have been receiving benefits.

Technically, the PBGC is BROKE. It has borrowing provisions with the Treasury Dept.

This country is living WAY beyond it's means and it will eventually come back to bite us HARD.

Countries, like individuals DO GO BANKRUPT.

Cliff Cannon

@ Contango : Amen

Fromthe419

Seems to me like Obama chose to give a brotha (Union) a hand and chose to stick it up the rear ends of those that were in management. Treat them both the same good or bad. I agree we are living way beyond it's means. There was an earlier article about Obama meeting with Xi, we can't dictate to China about anything, they can reply by not buying our bonds or dumping our bonds and that would be the end of us.

Contango

Re: "...they can reply by not buying our bonds or dumping our bonds and that would be the end of us."

When available, watch the beginning of the movie about the 2008 financial collapse, "Too Big To Fail."

That scenario is discussed.

FYI: The Chinese have been buying fewer Treasuries and more hard assets like U.S. real estate and corps.

http://abcnews.go.com/Politics/m...