GM won’t honor Delphi pensions; PBGC takes over

WASHINGTON (AP) — The Pension Benefit Guaranty Corp. said today that it will assume responsibility for the pension plans of 70,000 Delphi Corp. workers and retirees, as the troubled auto supplier continues to restructure under bankruptcy protection.

The PBGC said it is stepping in to protect the salaried and hourly pensions because Delphi, which has been operating under Chapter 11 for nearly four years, cannot afford to maintain them, and its former parent, General Motors Co., has said it will not assume them.

Troy, Mich.-based Delphi’s hourly pension plan covers an estimated 47,000 people. The PBGC said it expects to be responsible for about $4 billion of the plan’s shortfall of nearly $4.4 billion.

For more information, see Thursday’s Vindicator or www.vindy.com.