Delphi salaried retirees prep for legal fight

The company's modified reorganization plan approved last Monday (June 1) stated Delphi will abandon its pension fund as it emerges from bankruptcy.

Under this plan, the hourly pension plan will be assumed by General Motors - Delphi's former parent company - while the salaried retirees' pension plan will be assumed by the PBGC. (Global Pensions; June 2, 2009)

DSRA interim chairman and member of the National Automotive Coalition Den Black told Global Pensions: "Some people have maintained their benefits, while we have been singled out and discriminated for reasons we do not understand."

He added: "We are willing to take a haircut, but we are being scalped, while others are not even getting a trim."

Black also said DSEA had tried so far "any avenue to provide reasonable ideas to help the company deal with their legacy issues and get some equity for salaried employees".

Meanwhile, in a message posted on its website, the DSEA asks its members to inundate today the PBGC with fax messages urging the pension lifeboat to advocate on behalf of the Delphi Salaried Retiree Pension to GM.

The association said virtually all the plan's participants worked over two thirds of their career as GM salaried employees, with cases of some spending only a few months as Delphi employees prior to retirement. Black said he had been employed by GM for 35 years and by Delphi for two years.

In addition, the association said if the plan is absorbed by GM, the PBGC would avoid the assumption of another large underfunded plan.

A spokesman for the PBGC confirmed the agency had received a number of faxes by the DSEA.