US - The Delphi Salaried Retirees Association (DSRA) has hired law firm Krieg de Vault to challenge Delphi Corporation's announced intention of allowing its salaried pension program to default to the Pension Benefit Guaranty Corporation (PBGC).
Under this plan, the hourly pension scheme will be assumed by General Motors - Delphi's former parent company - while the salaried retirees' pension plan will be assumed by the PBGC.
DSRA interim chair Den Black said: "The situation has become critical. Immediate legal steps must be taken to prevent the pension default. Some 15,000 hard-working Americans stand to lose 30 to 70% of their pension at a time when they suddenly have had to pay up to ten times the cost of health care and life insurance.
"It is imperative that the Delphi Salaried Pension Fund be fully funded to prevent financial disaster for thousands of people who worked a lifetime to earn this benefit."
Black also urged the Delphi salaried retirees to continue to contact congressional representatives and members of the Obama Administration to enlist their support to prevent the default, as well as to revert the pension plan to GM.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.