US - Automotive parts supplier Delphi has moved some of its unfunded pension liabilities to parent company General Motors (GM) and has not applied to the Pension Benefit Guaranty Corp (PBGC) to increase pension funding waivers.
The Delphi plan caused an Employee Retirement Income Security Act (ERISA) contribution limit trigger as a result of its "relatively favourable funding position" as of October last year.
Delphi said it had achieved this limit and no longer needed the waivers to transfer the liabilities to GM.
John Sheehan, VP and chief restructuring officer, Delphi, said; "We appreciate the constructive support of the IRS and PBGC that we have received throughout our Chapter 11 proceedings and look forward to the continued support of these agencies as Delphi seeks to meet its commitment to fund its pension plans."
Delphi generated revenue of US$5.3bn in Q1 2008, down $0.4bn from last year, creating a net loss of $589m. It was forced to file for Chapter 11 bankruptcy proceedings in September last year.
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