Judge rules PBGC must set aside funds in Delphi salaried retirees' pension dispute

A judge said a federal pension agency must set money aside as it cuts pensions of Delphi Corp.’s salaried retirees, just in case it loses a lawsuit the retirees filed.

Judge Arthur Tarnow of federal district court in Detroit said Tuesday that the Pension Benefit Guaranty Corp. can either put money in escrow or stipulate that it will make the retirees whole if the benefit reductions are reversed.

The money to be set aside should cover the amount of pension cuts that are being made, starting in February, the ruling said.

Judge Tarnow issued the ruling after a Dec. 22 hearing, in which the Delphi Salaried Retirees Association argued for an injunction that would stop the cuts from being made.

For the complete story, see Thursday’s Vindicator and Vindy.com