PBGC To Assume Delphi Pension Plans

PBGC ^ | July 22, 2009

[arichtaxpayer]

WASHINGTON—The Pension Benefit Guaranty Corporation today announced it will assume responsibility for the pension plans of 70,000 workers and retirees of Delphi Corp., the nation’s largest producer of automotive parts. The PBGC will initiate action to become trustee of the plans, a process that could last up to several months.

[arichtaxpayer]

The sslaried retirees (my husband) have been fighting this for the last several months. GM had planned to take over the UAW pensions, and now they are losing their pension too. 15,000 salaried and almost 50,000 hourly.

[GeronL]

PBGC = Friends of Obama??

Didn’t the Car Czar make GM give this group a $2 billion loan during the bankruptcy to buy Delphi?

[Wolfie]

Bah. Those people shouldn’t expect what they were promised.

[Leisler]

Democrat voting, union, highest paid, .....and now picked up by taxpayers like me that have none, zero.

Nobel economics winner James M. Buchanan proved that any government scheme will be captured and used to the detriment.

This is just another proof that large companies, their management, union workers and political friends are economic threats via taxation and government power to the rest of us.

[Leisler]

GM, 50,000 ‘workers’, 1 million retires.

All of them, supposedly, adults. Always ready to make crappy cars, go on strike, shake down/extort customers via friends in Washington....and anybody should expect what?

[rawhide]

Is this good for the pensioners?

[arichtaxpayer]

He)) no. For the people already on social security, they will be OK. My husband is in his late 50’s. We will receive about $1,000 a month. Our healthcare (taken away in April) costs $1,000 a month. After 30+ years = $0.

[rawhide]

I thought the PBGC would pay you on your pension fully, unless you had a very large pension coming? No? I remember reading about this when the airline pilots were facing this scenario. Some pilots stood to lose a significant amount, but their pensions were sky-high, no pun intended. Can you point out to me how the PBGC figures out how much to pay you, if they take over a pension fund? Is it a fixed percentage?

[rawhide]

Look here:http://www.pbgc.gov/workers-retirees/benefits-information/content/page789.html

[jaydubya2]

The union has been fighting this also:

July 13, 2009 Stop Unfair Treatment of USW Retirees

The Steelworkers employed by Delphi are among the 50,000 retirees and their families who will lose their General Motors health coverage because of demands the U.S. Treasury made when it negotiated to buy GM. But, not all union retirees will be impacted. The retirees at United Autoworkers-represented facilities were singled out and allowed to keep their insurance. It simply isn’t fair to give some union workers their health care while denying the Steelworker retirees and the retirees from a dozen other unions that represent GM-owned facilities. Our members deferred wages to secure these benefits. Now, after years of dedicated work, the promised benefits will not be there.

Please help our USW sisters and brothers out today! Call the White House and urge the Obama administration to save retiree health care at GM. The health care benefits of 50,000 retirees are at stake.

[Loyal Buckeye]

Well, doesn’t everyone have a pension guaranteed by the PBGC (i.e., the taxpayers)? .....ah, didn’t think so.

[Timeout]

Lots more information here:
http://www.freerepublic.com/focus/news/2299366/posts?page=2