Thursday, September 27, 2012
DAYTON, Ohio (AP) — Attorneys for a federally backed pension insurer have declined to enter mediation with retirees of a bankrupt auto-parts supplier suing to have their full pensions restored.
The Dayton Daily News reports that the Pension Benefit Guaranty Corp. rejected the non-binding mediation with Delphi salaried retirees. A spokesman for the insurer said today said it can pay out only the amounts authorized by Congress.
Chuck Cunningham with the Delphi Salaried Retirees Association said it came after six weeks of discussions.
The retirees have been struggling for three years to get their full pensions from Delphi.
In July 2009, a then-bankrupt Delphi surrendered its pension obligations to Pension Benefit Guaranty Corp. That resulted in pension payments that were 30 percent to 70 percent lower than the retirees expected.