By Ken de la Bastide
American taxpayers could be given access to documents surrounding the Delphi Corp.’s attempt to move pensions for salaried retirees to a federal pension agency.
A group of 22 congressmen have asked the Auto Task Force to make the information available.
A letter authored by Rep. Christopher Lee, R-N.Y., was signed by the lawmakers and sent to Treasury Secretary Timothy Geithner, asking him to direct the Automotive Task Force to make public all documents concerning the default of the salaried employees pensions to the Pension Benefit Guaranty Corp.
Rep. Dan Burton, R-5th District, was the only member of the Indiana congressional delegation to sign the letter.
Delphi is seeking to default the pensions for 15,000 salaried retirees to the PBGC.
The Delphi Salaried Retirees Association is seeking to have General Motors Corp. assume the Delphi pensions, as is planned for the pensions of the United Auto Workers Union.
GM intends to purchase four Delphi plants, including the facilities in Kokomo, when it emerges from bankruptcy.
In their letter, the congressional representatives expressed concern for the “inequitable decision to default the Delphi Corp.’s salaried retiree pension plan to the PBGC, while General Motors agreed to assume the auto parts supplier’s hourly pension obligation.”
The congressmen estimate the retirees could lose as much as 70 percent of their pension payments.
“It is fundamentally unfair that two groups of employees from the same company, who worked side-by-side for so many years, are being treated so differently by the federal government,” the letter states.
Lee’s letter notes that taxpayers will own 60 percent of GM when it emerges from bankruptcy.
“They deserve a full and public explanation of how this inequitable decision was made,” wrote Lee.
The situation has become critical, according to Den Black, interim chair of the DSRA.
“We need more congressional and senatorial representatives, especially from ‘Delphi states’ to step forward to protect their constituents,” he said.
“Immediate steps must be taken to prevent the pension default,” Black continued. “This is a precedent-setting case that could determine outcomes for millions of other retirees whose former employers are under bankruptcy protection.”
