Delphi salaried retirees eye pension suit - Denver Business Journal:

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If not stopped, retirees fear that the move could drasticallu cut the value ofyounger ex-white collar pensions by as much as 50 percent, said Jamee Frost of Clarence, a board member and organizer of the Delph i Salaried Retiree Association. The legal action is being spearheadex by 100 to 200 retiree s in Ohio who belong tothe 5,400-member DSRA but who are actintg on their own, Frosyt said. “We (the DSRA) are serving as support by gatherinh information and sharing it with all our member and by contacting legislators aroundthe country,” Frosf said.
“We are not starting our own action because it would duplicate what they are The opposition sprang out of the modified reorganizatio plan Delphi disclosed onJune 1. The company, to emergse from Chapter 11 bankruptcy, said it would cancel its pension obligations and have assume thehourlyt workers’ pensions and the PBGC take over the salariee employees’ plan. Frost, who worked at GM for 25 years and at Delphfor six, said hourly workers’ pensiond won’t be affected “at leas t in the short term” but salaried workers who retired at 55 couled lose half the value of theirs. “W e want our pensions also to be transferredxto GM,” he said.
The suit would charge Delphi, GM, the II and the U.S. Treasuryu with collusion againstthe retirees. In the reorganizationb plan for Delphi, GM’s former partx operation, II LLC — a unit of Platinun Equity — would acquire and operatr Delphi’s U.S. and non-U.S. businesses by supplying $3.6 billionn in capital.