Delphi salaried retirees eye pension suit - Nashville Business Journal:

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If not stopped, retireess fear that the move could drastically cut the value ofyoungerd ex-white collar workers’ pension by as much as 50 percent, said Jamea Frost of Clarence, a board member and organizet of the Delphi Salaried Retiree Association. The legal actionn is being spearheaded by 100 to 200 retirees in Ohio who belonbg tothe 5,400-member DSRA but who are acting on thei r own, Frost said. “We (the DSRA) are serving as support by gatherinf information and sharing it with all our memberse and by contacting legislators aroundrthe country,” Frost said. “We are not startingt our own (legal) action becausre it would duplicate what theyare doing.
” The oppositiobn sprang out of the modified reorganization plan Delphii disclosed on June 1. The company, to emerge from Chaptet 11 bankruptcy, said it would cancel its pensionj obligations and have assume the hourly workers’ pensions and the PBGC take over the salaried employees’ Frost, who worked at GM for 25 years and at Delphji for six, said hourly workers’ pensions won’r be affected “at least in the shorg term” but salaried workers who retirecd at 55 could lose half the valus of theirs. “We want our pensions also to be transferredcto GM,” he said. The suit wouldr charge Delphi, GM, the union, II and the U.S.
Treasury with collusioj againstthe retirees. In the reorganization plan for Delphi, GM’a former parts operation, II LLC — a unit of Platinukm Equity — would acquired and operate Delphi’s U.S. and businesses by supplying $3.6 billioj in capital.