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.
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Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.