Bill would restore salaried Delphi retirees' pensions

Theresa Clift

Published: September 13, 2012 6:00 am ET

Related to this story

Topics Automotive
Companies & Associations

WASHINGTON (Sept. 13, 1:45 p.m. ET) — An Ohio senator wants to give $1 billion from a General Motors stock sale to salaried Delphi Automotive retirees who lost much of their pension coverage during the supplier’s bankruptcy proceedings, but the Delphi Salaried Retirees Association says it prefers another solution.

U.S. Sen. Sherrod Brown, D-Ohio, plans to introduce a bill Thursday that would force the U.S. Treasury to sell about $1 billion of its GM stock holdings and put the funds in an account that would supplement the Delphi retiree pensions.

“Many Delphi retirees have yet to receive the pensions they earned and deserve,” Brown said in a statement. “Now that General Motors is profitable once again and the federal government is preparing to sell its stake in the company, a portion of the proceeds should be used for those shortchanged retirees.”

The Treasury, as a result of the 2008-2009 bailout of GM, owns about 500 million shares of GM stock, a stake valued at about $11.6 billion at current market prices. GM shares closed today at $23.13, up 16 cents.

Den Black, chairman of the Delphi Salaried Retirees Association, said his group would prefer a solution that does not require taxpayer dollars or slow-moving legislation.

“We’re more than happy for all the help we can get from anywhere but the issue here is that this can be fixed now,” Black said.

He said the association has been working on several ways to achieve the goal, including proposing an administrative action to use funds from the government’s Pension Benefit Guaranty Corp. instead.

The association filed a federal lawsuit against Pension Benefit Guaranty Corp. in Detroit in October 2009, which is in the discovery phase, Black said.

A Brown spokeswoman said that in addition to his proposal, Brown also supports the retirees’ proposed settlement, and has been working with U.S. Sen. Debbie Stabenow, D-Mich., to persuade the administration to also consider that proposal.

GM owned Delphi until 1999, but still has received parts from the company since. Delphi filed for bankruptcy in 2005, and subsequently sold off or closed most of its U.S. plants. It emerged from bankruptcy in October 2009.

When Delphi terminated the pension plans of 70,000 people in 2009, it left a $7.2 billion shortfall.

During the bailout, GM topped off the pensions to Delphi hourly workers, most of whom are in the UAW, but did not do the same for Delphi’s more than 21,000 nonunion salaried retirees.

The Pension Benefit Guaranty Corp. assumed the pension plans and must pay $6 billion of the losses, but retirees would still lose about $1 billion or more, the Government Accountability Office said in December, The Detroit News reported.


Comments

Bill would restore salaried Delphi retirees' pensions

Theresa Clift

Published: September 13, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Haitian builds system for Renault's new China auto assembly plant

April 24, 2015 11:10 am ET

A late-comer to the world's largest auto market, French carmaker Renault SA is currently building its first factory in China.    More

Image

Eriks NV buys two US polymer companies

April 24, 2015 10:38 am ET

Dutch company Eriks NV is expanding its reach in the North American plastics sector with two acquisitions: Dallas-based Seals and Packings Inc. and...    More

Image

Jeco adds Ferry rotational molder to handle increase in business

April 23, 2015 12:27 pm ET

Jeco Plastics Products LLC is ramping up for more work, adding a new Ferry 2600 rotational molder that will provide more capabilities.    More

Image

Engel, VW working on joint research into high volume composites in auto

April 23, 2015 9:40 am ET

Engel, the Austria-based manufacturer of injection molding machines, is building one of its largest machines for a research center looking into...    More

Image

Federal-Mogul building auto wiper blade plant in Romania

April 22, 2015 12:28 pm ET

U.S. car parts maker Federal-Mogul Holdings Corp. has unveiled plans to establish a new production facility in Ploiesti, Romania, reports local news m...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events