Pension takeover for Delphi retirees
Pension Benefit Guaranty to take over 70,000 plans
Updated: Wednesday, 22 Jul 2009, 11:32 AM EDT
Published : Wednesday, 22 Jul 2009, 8:59 AM EDT
The Pension Benefit Guaranty Corp. says it will assume responsibility for the pension plans of 70,000 Delphi workers and retirees.
The federal group, PBGC, says it's stepping in to protect the salaried and hourly pensions because Delphi Corp., which is still operating under Chapter 11, cannot afford to maintain them and General Motors will not assume them.
Troy, Mich.-based Delphi, GM's former parts division, was spun off from the Detroit-based automaker in 1999 and filed for bankruptcy protection in 2005.
In September 2008 GM took on about $2.5 billion in liabilities of Delphi's hourly pension plan. Until recently, it had been expected to assume the entire obligation for Delphi's hourly plan.
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