PBGC Inspector General will look into Delphi pension delays

DAYTON, Ohio (WDTN) – The Office of Inspector General for the Pension Benefit Guaranty Corporation (PBGC) is responding to a letter lawmakers sent her regarding delays in getting the Delphi Salaried Employee’s their full pensions.

It’s been five years since the General Motors bailout that left Delphi Salaried Employees without a job and without their full pensions. Delphi was GM’s major auto parts producer.

Hourly union employees received their full pensions while salaried ones only received 30-70 percent. Those retirees and lawmakers have been fighting to get the rest.

Today, 2 NEWS Investigates received a statement from Acting Inspector General, Deborah Stover-Springer. The response on behalf of the office is as follows.

“We received a request from the Ohio congressional delegation to look into apparent delays in PBGC completing processes necessary to determine final benefits for participants in the Delphi Salaried Plan.  This plan terminated in 2009.  Certainly when a pension plan terminates, it is a stressful life event for the participants.  Though retirees receive “estimated” benefit payments from PBGC when they are eligible, sometimes those estimated payments are less than the participants expected.  They cannot appeal that determination until PBGC issues a final benefit determination.  Before PBGC can determine a final benefit, it must complete several processes – for example, to validate participant data and the value of plan assets – and prepare certain reports, including actuarial analyses.  PBGC communicated through responses to Freedom of Information Act requests that it would complete some of the processes in  2013, with others in 2014; a recent FOIA response stated a 2014-2015 completion timeframe.  We share the concerns about delays in pension plan processing, such as these for the Delphi Salaried Plan, and will look into the issues raised by the Ohio delegation.”

 

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