US - The Delphi Salaried Retirees Association (DSRA) filed suit against the Pension Benefit Guaranty Corporation (PBGC) yesterday, challenging the termination of the salaried employees' pension plan.
The move represents the latest twist in DSRA's three-month long struggle to secure the retirement savings of Delphi's salaried retirees since General Motors - Delphi's parent company - went bust. The lawsuit was filed in US District Court in Detroit.
In June, the DSRA announced plans for a legal action to challenge Delphi's announced intention to allow its salaried pension program to default to the PBGC (Global Pensions; June 23, 2009).
DSRA interim chair Den Black said the complaint "challenges the PBGC's summary termination of our plan as a violation of the federal statute known as ERISA, and the US Constitution's Due Process Clause".
Black added DSRA allegations claim the PBGC "impermissibly" sought to terminate the pension plan through an agreement with Delphi executives "who were supposed to be acting as our fiduciaries, but who were not looking out for our best interests".
He said: "We also challenge the termination of the plan as unsupported by the evidence, as well as it being illegitimately prompted by the federal government's effort to salvage the auto industry as cheaply as possible, and at our expense."
The PBGC declined to comment.
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