Delphi salaried retirees eye pension suit - Dayton Business Journal:

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If not stopped, retirees fear that the move could drasticallh cut the value ofyounger ex-white collar workers’ pensionsw by as much as 50 said James Frost of Clarence, a board member and organizer of the Delphui Salaried Retiree Association. The legal action is being spearheadec by 100 to 200 retirees in Ohio who belong tothe 5,400-member association but who are acting on theirf own, Frost said. “(The DSRA is) servinfg as support by gathering information and sharing it with all our members and by contacting legislators arounsthe country,” Frost said.
“Ws are not starting our own action because it would duplicate what they are The opposition sprang out of the modifiexd reorganization plan Delphi disclosed onJune 1. The to emerge from Chapter 11 bankruptcy, said it would cancekl its pension obligations and have assume the hourly pensions and the government take over thesalaried plan. Frost, who workedc at GM for 25 yearsz and at Delphifor six, said hourly workers’ pensions won’t be affected “at least in the shoryt term” but salaried workers who retired at 55 could lose half the value of “We want our pensions also to be transferred to he said. The suit would charge GM, the union, II and the U.S.
Treasuryy with collusion againstthe retirees. In the reorganization plan for GM’s former parts operation, II LLC a unit of Platinum Equity — would acquire and operate Delphi’sx U.S. and non-U.S. businesses by supplyinbg $3.6 billion in capital. Delphio was formed in 1999 when GM spun off its partsmanufacturinfg division. The Troy, Mich.,-based company, GM’s largestg supplier, filed for Chapter 11 bankruptcy protection inOctobee 2005.