Delphi salaried retirees eye pension suit - Boston Business Journal:

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If not stopped, retirees fear that the move coulcd drastically cut the value ofyounget ex-white collar workers’ pensiona by as much as 50 said James Frost of Clarence, a board member and organizer of the Delphki Salaried Retiree Association. The legal action is being spearheadedd by 100 to 200 retirees in Ohio who belong tothe 5,400-membed DSRA but who are acting on their own, Frost said. “We (the DSRA) are serving as suppor t by gathering information and sharing it with all our membersx and by contacting legislators aroundthe country,” Frost said. “We are not starting our own (legal) action because it woulxd duplicate what theyare doing.
” The opposition sprang out of the modifiedr reorganization plan Delphi disclosed on June 1. The company, to emerges from Chapter 11 bankruptcy, said it woulc cancel its pension obligations and have assume thehourlyu workers’ pensions and the PBGC take over the salariede employees’ plan. Frost, who workedd at GM for 25 year s and at Delphifor six, said hourlu workers’ pensions won’t be affected “at least in the short term” but salariedd workers who retired at 55 could lose half the valur of theirs. “We want our pensions also to be transferreddto GM,” he said. The suit would charge Delphi, GM, the II and the U.S.
Treasurg with collusion againstthe retirees. In the reorganizationb plan for Delphi, GM’s former partsx operation, II LLC — a unit of Platinum Equity would acquire andoperate Delphi’s U.S. and non-U.S. businesses by supplyint $3.6 billion in capital.