Report challenges GM bankruptcy pension moves

Treasury-Dept-Delphi

CLEVELAND (AP) – A government inspector general says President Barack Obama’s administration played a key role in the General Motors bankruptcy in 2009 as pensions were cut for salaried Delphi Corp. retirees but not unionized workers and retirees of the supplier.

The report issued Thursday stopped short of saying the administration’s role was right or wrong. It made no recommendations.

About 20,000 Delphi salaried retirees – nearly half in Ohio – saw their pensions cut by as much as 70 percent during GM’s bankruptcy.

The report says administration officials indicated they acted quickly to avoid GM’s failure.

The Treasury Department, which oversaw the president’s auto task force, took issue with the IG report. Assistant Treasury Secretary Timothy Massad said the pension decision was made by GM and was “driven by sound commercial reasons.”

Den Black with the Delphi Salaried Retirees Association said the report made clear something salaried retirees had long suspected. “The administration and the Treasury and the Auto Task Force were clearly the drivers relative to the decisions made as the 40-day GM bankruptcy played out,” he said.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

blog comments powered by Disqus