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Mediation rejected for Delphi pensioners

September 28, 2012
Tribune Chronicle | TribToday.com

Attorneys for a federally backed pension insurer have declined to enter mediation with retirees of a bankrupt auto-parts supplier suing to have their full pensions restored.

The Dayton Daily News reports that the Pension Benefit Guaranty Corp. rejected the nonbinding mediation with Delphi salaried retirees. A spokesman for the insurer said Thursday it can pay out only the amounts authorized by Congress.

Chuck Cunningham with the Delphi Salaried Retirees Association said it came after six weeks of discussions.

The retirees have been struggling for three years to get their full pensions from Delphi.

In July 2009, a then-bankrupt Delphi surrendered its pension obligations to Pension Benefit Guaranty Corp. That resulted in pension payments that were 30 to 70 percent lower than the retirees expected.

"This is not a surprise," said Bruce Gump of the Warren-based Delphi Retirees Group. "It's a little disappointing but the reality is this is how people act when they're guilty.

''They deceive, they deny and they delay and that's exactly what they did here."

He said PBGC has been dragging the process out for more than seven weeks and never had any intention of doing anything before the elections are over. He said they told the group previously they would approve the mediation.

He said Thursday they have filed unilaterally with the court to force PBGC into a mediation session.

He said the attorneys would not be forced to talk during the session but that the Delphi group would at least have the opportunity.

"We can talk about all the information we've found that shows our position is accurate," he said. "All we want is fair and equitable treatment. That's all we've ever asked for."

 
 

 

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