Delphi retirees to get trial in pension suit

[Bozita]

Source: Detroit Free Press

Posted: 6:08 p.m. Sept. 24, 2010
Delphi retirees to get trial in pension suit
BY GREG GARDNER
FREE PRESS BUSINESS WRITER


About 22,000 former white-collar Delphi workers' quest to restore their full pension benefits received an important green light Friday.

The retirees, many of whom were laid off or forced to retire early, have seen their benefits cut by 30% or more after their pensions were pushed onto the U.S. Pension Benefit Guaranty Corp., the federal corporation charged with rescuing Americans' pensions from financially faltering companies, as Delphi moved to exit bankruptcy last year.

They sued, alleging the government insurer improperly terminated their plan and unfairly slashed benefits.

On Friday, with his Detroit courtroom packed with retirees, U.S. District Judge Arthur Tarnow dismissed the PBGC's arguments to end the lawsuit, which means the retirees will get a trial.

Read more: http://www.freep.com/article/20100924/BUSINESS0105/100924080/1320/Delphi-retirees-to-get-trial-in-pension-suit