PBGC deal irks retired Packard executive

Delphi Packard retirees could still sue to block termination of their pension plan.

By William K. Alcorn

WARREN — Area Delphi Packard Electric salaried employees see Delphi’s action Friday to turn over its pension plans to the federal Pension Benefit Guaranty Corp. as another attempt to deny them their day in court.

As a result of Friday’s action, the PBGC on Sunday dropped its suit against Delphi to take over the plan.

However, Charles Cunningham, a retired Delphi Packard executive helping to organize legal action to prevent the PBGC from taking over the pensions, said the issue is not moot to the retirees.

“Quite honestly, we believe that once again they have found a way to circumvent the courts to the benefit of General Motors, Delphi and the federal government, and keeping us from having our day in court,” he said.

Obviously the retirees can’t bring suit to intervene in a suit that has been settled. The group can still sue to prevent termination of the pension plans, Cunningham said.

Cunningham said the PBGC is better than no option at all. But he said the retirees’ concern is that termination of the plan under the terms that exists would hurt them financially.

“A fully funded pension is a whole different story. But except for those people who have been retired for a long time, you’re looking at 30 to 70 percent losses in anticipated pensions. The younger the retirees are, the more severely hurt they will be,” Cunningham said.

Under the agreement, the federal pension insurer would take over the pension plans as of July 31, according to reports.

alcorn@vindy.com