Delphi retirees head to D.C.: Group will have hearing on lost benefits before Senate committee

Oct 28, 2009 (Kokomo Tribune - McClatchy-Tribune Information Services via COMTEX) -- DPHIR | Quote | Chart | News | PowerRating -- It may not be exactly what the Delphi Salaried Retirees Association wants, but having a hearing with the U.S. Senate is "way better than nothing."

Since February, when Delphi Corp. eliminated its salaried pensions and health-care benefits, the 15,000-member group has been fighting with the auto supplier to restore them.

The DSRA will discuss the issue at 10 a.m. Thursday in Washington, D.C.

The association increased its battle with Delphi this summer when, as part of its bankruptcy-exit plans, Delphi signed over the pension plans of its 70,000 salaried and hourly retirees to Pension Benefit Guaranty Corp.

After being in bankruptcy for four years, the auto supplier emerged from bankruptcy this month.

Delphi officials said eliminating the benefits would annually save more than $70 million.

Although PBGC also holds Delphi's hourly retirees' pensions, the auto supplier's former parent, General Motors, is "topping off" their pensions as part of a deal negotiated when GM spun off Delphi in 1999.

The "topping off" pension affects approximately 46,000 union members.

Salaried retirees were not included in the deal, said Den Black the DSRA's interim chair. As a result, Black's organization has filed a suit in U.S. District Court in Detroit against PBGC.

Bankruptcy attorney Jeffrey A. Schreiber said the DSRA's lawsuit is the only recourse it has to protect the retirees' pensions.

"They have no other choice but a lawsuit," said Schreiber, of The Schreiber Law Firm LLC. "It's always bad when the government gets involved. I can't tell you if [a lawsuit] will be successful or not. They are judged on a case-by-case basis. But they are going to need a court's action to determine if they are eligible or if they qualify for their pension. PBGC is denying it so this is their only recourse.

Thursday, the DSRA will provide testimony before the Senate Health, Education, Labor and Pension Committee in Dirksen Senate Office Building, Room 430.

The committee is conducting hearings to examine helping workers preserve retirement security through a recession.

"This is our first opportunity to be heard in the House," said Black, who is attending the hearings. "[The hearings] may not be totally focused on Delphi, but it is our first day in court, and it is way better than nothing."

Since having their benefits eliminated, Black said his organization has "worked hard. We have experts in most places. You name it. We have the people to put together a powerful story and we've worked hard to do that."

In addition, a politician recently reached out to Delphi's salaried retirees to assist them in recovering lost pensions.

Sen. Sherrod Brown, D-Ohio, presented legislation to take $3 billion from the government's $787 billion stimulus bill and create a Voluntary Employees' Beneficiary Association to provide health coverage for some union workers and salaried Delphi retirees.

In a statement, Brown said if the bill passes, it would ensure "Delphi retirees have access to the health care they earned."

While Brown's action appears admirable, Black said, "that is putting the money in the wrong place. We already have a VEBA. It pays an 80 percent subsidy for our health care coverage through 2010. This whole pension thing can be easily fixed. We just haven't seen it yet. But they need to do the right thing and treat us equally."

Black continues to emphasizes their battle has nothing to do with Delphi's union retirees and current hourly workers.

He said salaried retirees only want Delphi to "correct the wrongs they have done to us salaried retirees. We want to be treated equally like our union brethren. That's all we want.

"The bottom line is we want to ask them to fix it and they can do that is they want too."

Pat Crittendon worked for 26 1/2 years in Delco/Delphi's material management. The Kokomo woman retired in 2003 and she is "very happy" a lawsuit has been filed.

Furthermore, she's looking forward to what will occur after Thursday's hearing.

"I am staying up on what is going on," said Crittendon. "What happens Thursday depends on what and where the focus is going to be. I am interested in what they have to say and what they are going to be looking for."

Black, however, doesn't have to wait to see what the House committee will be looking for; he already sees the problems related to salaried retirees having their benefits terminated.

Black added salaried retirees have lost 70 percent of their based pensions while no other GM salaried or union workers has lost any of their based pensions.

Existing on $53 billion in taxpayers' money, GM's spokesman Tom Wilkinson said GM has no control over the pension dispute nor a legal obligation -- or money -- to restore what salaried retirees lost; especially since when the 1999 agreement was issued, Delphi salaried retirees received no "top off" agreements because they were not included in the discussion.

Nevertheless, with ongoing litigation, a Senate audience, and the possibility of having a House audience in the future, Black remains convinced problems can "be fixed and they can fix it.

"No matter how this comes out, there are very few stones, if any, that have been left unturned by us. We have been receiving national press coverage about the lack of equity in this case. They can fix it. I hope they do it."

--K.O. Jackson is the Kokomo Tribune's business writer. He can be reached at (765) 854-6739 or via e-mail kirven.jackson@kokomotribune.com

To see more of the Kokomo Tribune or to subscribe to the newspaper, go to
http://www.kokomotribune.com/. Copyright (c) 2009, Kokomo Tribune, Ind.
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index