PBGC tells judge it can’t set money aside for Delphi retirees

A federal pension agency told a judge that it can’t follow his orders to set money aside for Delphi Corp. retirees who are having their pensions cut.

The Pension Benefit Guaranty Corp. said it does not have the legal authority to either put money into escrow or stipulate that it can make retirees whole if they win a lawsuit that challenges the agency’s takeover of the pension plan.

The PGGC response asks Judge Arthur Tarnow of federal district court in Detroit to amend the order that he issued Tuesday.

Judge Tarnow’s order said he would not issue an injunction to stop the cuts if the PBGC set money aside.

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