Under the GM/UAW/Delphi Spinoff Agreement, GM was contractually obliged to fulfill the balance of unpaid pensions (by PBGC) if Delphi's pensions were vacated to PBGC.
GM has already stated that it WILL uphold that agreement and pay the unpaid balance that PBGC does not cover. Eligible Delphi/GM employees will hence receive TWO checks when PBGC takes over the vacated plan, one from PBGC, the remainder from GM.
That was also verified in an OP-ED rant (bemoaning the honoring of this agreement) in the Wall Street Journal yesterday, July 24, 2009.
Salaried workers, unfortunately, won't be covered. Delphi hourly retirees who exited under retirement via the Attrition Plans who 'checked the box' fall under the agreement. Those who didn't 'check the box' are in similar straits as the salaried, although the salaried group has won a ruling to be heard in the PBGC hearing that will soon be held.
Union officials: Expect Delphi pensions to sink
Under the GM/UAW/Delphi Spinoff Agreement, GM was contractually obliged to fulfill the balance of unpaid pensions (by PBGC) if Delphi's pensions were vacated to PBGC.
GM has already stated that it WILL uphold that agreement and pay the unpaid balance that PBGC does not cover. Eligible Delphi/GM employees will hence receive TWO checks when PBGC takes over the vacated plan, one from PBGC, the remainder from GM.
That was also verified in an OP-ED rant (bemoaning the honoring of this agreement) in the Wall Street Journal yesterday, July 24, 2009.
Salaried workers, unfortunately, won't be covered. Delphi hourly retirees who exited under retirement via the Attrition Plans who 'checked the box' fall under the agreement. Those who didn't 'check the box' are in similar straits as the salaried, although the salaried group has won a ruling to be heard in the PBGC hearing that will soon be held.
July 25, 2009 at 10:27 p.m. permalink suggest removal