Delphi retirees, task force to discuss pensions

By Don Shilling

The retirees asked for a court injunction to block the termination of a pension plan.

The Delphi Salaried Retirees Association will meet with the federal automotive task force and has filed two legal actions as it tries to save the pensions of members.

“We’re not giving up,” said Chuck Cunningham of Howland, who helped organize a meeting Thursday to update about 400 retirees.

Leaders of the retirees group will meet with the task force Thursday along with representatives of retirees from General Motors, Chrysler and Ford. Ron Bloom, who assumed leadership of the task force this week, is expected to attend the meeting, Cunningham said.

The Delphi retirees “will plead our case” and provide the task force with additional information to support their position that their pensions should not be terminated, he said.

“We’re hoping the task force understands the inequities that have been done here and agree to help us,” said Cunningham, who was a former senior executive at Delphi Packard Electric in Warren.

Delphi has proposed turning over the pensions of salaried retirees to the federal Pension Benefit Guaranty Corp., which insures pensions. Many retirees would see a pension reduction of between 30 percent and 70 percent because PBGC has limits to payouts, the retirees have said.

Delphi, which has been in bankruptcy court since 2005, said it explored alternatives to keep the salaried pensions but none was feasible. A bankruptcy judge is considering a proposal by Platinum Equity, a California investment firm, to take control of Delphi and bring it out of bankruptcy court.

Delphi also is seeking to end monthly severance payments that many executives were told would run for a year.

Delphi Packard has about 1,500 local retirees, but retirees in other states are involved in the retirees group as well.

Cunningham said the group also has filed a federal lawsuit in Michigan that asks that an independent administrator be appointed to oversee the pension plan instead of Delphi executives.

The group also filed an injunction that asks the judge to block termination of the pension plan until it can be reviewed by an independent administrator.

Cunningham said the retirees think a way can be found to keep all or most of the pension payments that would be lost under PBGC control.

The group also filed a motion Wednesday in Delphi’s bankruptcy case that asks for it to be a party in the case. The retirees have hired a Washington, D.C., law firm to represent them.

In addition to the legal update, retirees who met Thursday at the Avalon Inn in Howland heard about a new health-care option.

Delphi also terminated the salaried retirees’ health-care benefits, which caused the formation of the retirees association. After the retirees protested the cuts in court, Delphi agreed to provide $8.7 million to fund an account for health benefits.

Cunningham said the money “is a drop in the bucket,” but it is being used to pay an insurance company to provide the retirees with a health-insurance plan. Retirees will have to pay large premiums for the coverage, but people with pre-existing conditions will at least have the option of going with the coverage, he said. Otherwise, they may not have been able to find insurance, he said.

shilling@vindy.com