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Updated: 11:41 a.m. Friday, July 6, 2012 | Posted: 11:40 a.m. Friday, July 6, 2012

Congressional hearing Tuesday on Delphi pension problems

Staff Report

WASHINGTON — A U.S. House subcommittee will examine actions by a federal pension agency that reduced the pensions of about 20,000 retired Delphi Corp. salaried employees, said Rep. Mike Turner, R-Centerville.

The House Oversight and Government Reform’s subcommittee on financial services has scheduled a hearing for 10 a.m. Tuesday in the Rayburn House Office Building.

Turner said he requested the session to hear testimony from federal Pension Benefit Guaranty Corp. employees who made the decisions that resulted in reduced pension benefits to the salaried employees at Delphi, an auto parts maker that filed for bankruptcy reorganization protection in 2005.

The government agency eventually took over Delphi’s pension plans at an estimated cost of $6.2 billion. When Delphi filed for bankruptcy court protection, the company all but stopped contributing to its pension plans. The PBGC collects premiums from companies to insure their pensions.

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