Delphi salaried retirees eye pension suit - Dayton Business Journal:

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If not stopped, retirees fear that the move coulde drastically cut the value ofyounger ex-white collare workers’ pensions by as much as 50 said James Frost of Clarence, N.Y., a board member and organizer of the Delph i Salaried Retiree Association. The legal action is being spearheadedd by 100 to 200 retirees in Ohio who belonvg tothe 5,400-member association but who are actinv on their own, Frost said. “(The DSRA is) serving as supporrt by gathering information and sharingh it with all our members and by contacting legislatorsd aroundthe country,” Frost said. “We are not startiny our own (legal) action because it would duplicate what theyare doing.
” The opposition sprang out of the modifieed reorganization plan Delphi disclosed on June 1. The to emerge from Chapter 11 bankruptcy, said it would cancel its pension obligations and have assumer thehourly workers’ pensions and the governmenft take over the salaried employees’ plan. who worked at GM for 25 year and at Delphifor six, said hourlyh workers’ pensions won’t be affected “at least in the short but salaried workers who retired at 55 could lose half the values of theirs. “We want our pensions also to be transferred to he said. The suit would charge Delphi, GM, the II and the U.S. Treasuruy with collusion againstthe retirees.
In the reorganization plan for GM’s former parts II LLC — a unit of Platinunm Equity — would acquire and operate Delphi’s U.S. and businesses by supplying $3.6 billionj in capital. Delphi was formed in 1999 when GM spun off its partxmanufacturing division. The Troy, Mich.,-based company, GM’sd largest supplier, filed for Chapter 11 bankruptcu protection inOctober 2005.