Benefits

Auditors Probe U.S. Role in GM Funding of Delphi Pension Plan

By Staff Report

Jan. 27, 2011

Federal auditors said they are looking at whether the Obama administration pressured General Motors Co. to provide additional funding for Delphi Corp.’s pension plan for hourly workers.


The audit focuses on GM’s decision after its 2009 bankruptcy to add to Pension Benefit Guaranty Corp. benefits for Delphi hourly workers without doing the same for salaried retirees.


Neil Barofsky, the special inspector general overseeing the $700 billion federal bailout of financial institutions and the auto sector, reported the audit on Jan. 26 in his quarterly report to Congress.


A number of congressmen led by Rep. Christopher Lee, R-N.Y., have questioned whether political considerations played a role in GM’s decision on behalf of hourly retirees.


Barofsky, a former federal prosecutor who also is conducting an investigation of possible illegal conduct by GM and Chrysler Group in their dealer reductions, didn’t say when his audits would be completed.


In June 2009, Lee and more than 20 other lawmakers wrote to Treasury secretary Timothy Geithner to complain that 15,000 salaried Delphi retirees may have their pensions cut by as much as 70 percent.


“It is fundamentally unfair that two groups of retirees from the same company, who worked side-by-side for so many years and who are faced with the same unfortunate situation, are being treated so differently by the federal government,” the letter said.  


Filed by Neil Roland of Automotive News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


 


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog

Benefits

We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off