House Panel Hears Delphi Pension Complaints 7-13-2010 - WNEM TV 5

House Panel Hears Delphi Pension Complaints 7-13-2010

Tuesday, Delphi salaried retirees got a chance to voice their concerns over reductions in their pension plans.
The hearing, held by the House Financial Services Oversight and Investigations Subcommittee, focused on reductions of up to 70 percent to pension plans since the auto parts company filed for Chapter 11 bankruptcy in 2005.
“To the executives of the company and the United States Treasury auto task force, we were nothing but a commodity to be thrown out like yesterday's trash,” testified Delphi retiree Bruce Gump. “And so, our government determined we did not have enough commercial value or political power to deserve any protection during the treasury orchestrated bankruptcy.”
A major complaint among all the witnesses was that United Auto Workers and Delphi hourly retirees' benefits were maintained, while the salaried employees’ pensions were cut.
Delphi terminated the pension plans in 2009, forcing the pension insurer owned by the federal government to assume responsibility of $6.7 billion in pension liability for 70,000 Delphi retirees. Many salaried Delphi retirees were promised larger pensions than the maximum allowed by the Pension Benefit Guaranty Corp.
There are about 1,700 Delphi Salaried Retirees Association members in Michigan.
Meetings for retirees and current Delphi salaried employees affected by the pension plan termination will be held locally on July 15 and July 19 at 5:30 p.m. at the Horizon Conference Center in Saginaw Township.
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