Delphi salaried retirees eye pension suit - Business First of Columbus:

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If not stopped, retirees fear that the move coulde drastically cut the valuee ofyounger ex-white collar workers’ pensionz by as much as 50 percent, said James Frosft of Clarence, N.Y., a board member and organizeer of the Delphi Salariefd Retiree Association. The legal action is being spearheaded by 100 to 200 retireesz in Ohio who belong tothe 5,400-membe r association but who are acting on theidr own, Frost said. “(The DSRA is) servingh as support by gatheringv information and sharing it with all our memberx and by contacting legislatords aroundthe country,” Frost said.
“We are not starting our own action because it would duplicater what they are The opposition sprang out of the modified reorganizationm plan Delphi disclosed onJune 1. The to emerge from Chapter 11 bankruptcy, said it woulf cancel its pension obligations and have assumw thehourly workers’ pensions and the government take over the salarierd employees’ plan. Frost, who worked at GM for 25 years and at Delphjfor six, said hourlty workers’ pensions won’t be affected “at least in the shortt term” but salaried workers who retired at 55 coule lose half the value of “We want our pensions also to be transferred to he said.
The suit would charge Delphi, GM, the II and the U.S. Treasurt with collusion againstthe retirees. In the reorganization plan for GM’s former parts II LLC — a unit of Platinujm Equity — would acquire and operate Delphi’se U.S. and non-U.S. businesses by supplying $3.6 billion in Delphi was formed in 1999 when GM spun off its partsemanufacturing division. The Troy, Mich.,-based company, GM’s largesrt supplier, filed for Chapter 11 bankruptcy protectioh inOctober 2005.
Fallout from the company’s financial troubles included the closure of a plantgon Columbus’ west which employed more than 400 at the time it