Bloomberg Law
March 25, 2019, 2:07 PM UTC

Federal Pension Insurer Cleared in Delphi Retirees’ Suit

Jacklyn Wille
Jacklyn Wille
Reporter

Retirees of Delphi Corp. lost a long-running lawsuit attempting to hold the federal pension insurance agency liable for its 2009 takeover of their pension plans.

The Pension Benefit Guaranty Corporation didn’t need court approval before it terminated the Delphi pension plans and assumed liability for the benefits of about 70,000 workers and retirees, Senior Judge Arthur J. Tarnow of the U.S. District Court for the Eastern District of Michigan held March 22.

The retirees said the PBGC should have used its negotiating leverage with General Motors Corp.—which owned Delphi before a 1999 corporate spin-off—to force GM to assume their ...

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