The government shouldn't have to add more money; they have enough money from the Delphi retirement fund that they tok over. The PBGC took over the Delphi pension plan when the stock markets were at their lowest point, and at that time, the salaried pension plan was 85% funded. Since then, the market has recovered substantially and the funds the PBGC got from the Delphi plan should have grown enough that the plan would have been more than fully funded if they had not raided it. In addition, the PBGC had liens on Delphi's foreigh assets that were supposed to cover the pension plans through Delphi's bankruptcy and they gave up those liens for pennies on the dollar in order to help GM exit bankruptcy.
September 7, 2012 at 11:20 a.m.
FairandEqual, It isn't only GM that is in the wrong. The real wrong-doer is the Federal Government -- the PBGC, the Auto Task Force, and the US Treasury under the direction of Secretary Timothy Geithner. The PBGC should never have taken over the Delphi pension plans.By the way, I do not plan to buy any more GM cars and my children will not either. Two of my three kids have purchase new cars this year and neither of them was a GM car (a first non-GM car for both of them). My third kid did not get a new car this year, but her next car will also be non-GM.
September 30, 2010 at 12:56 a.m.
Freeatlast has confused the facts about PBGC rules. He is correct that the PBGC does not insure or pay early retirement supplements. The PBGC does pay up to specified maximum limits, based on the age that you start receiving benefits from the PBGC (but never more than the amount you would have received from the employer). Most of the Delphi retirees worked for GM for many years before being spun-off into Delphi, at GM's whim, not by choice. Any many of them were forced to retire early so that they were depending on the promised early supplements. And their maximum pay level from PBGC is low due to their age. The real issue is that the Delphi Salaried Retirement Plan should NOT have been take over by the PBGC. The Plan was funded at a level above the funding level of the top 100 pension plans guaranteed by the PBGC at the time they took over the plan. The Treasury Dept, the Auto Task Force, and the PBGC terminated the Delphi plan without following due process.
July 31, 2010 at 8:23 a.m.