WASHINGTON, D.C. (WKBN) – The Pension Benefit Guaranty Corporation (PBGC) announced that it will cut some Delphi retirees’ pension checks moving forward in order to recoup past overpayments.
On Friday, U.S. Sen. Sherrod Brown (D-OH) issued a statement after the announcement. He said he is introducing legislation to prevent PBGC from cutting retirees’ benefits.
“Delphi salaried retirees throughout Ohio have waited months for clarity regarding their pensions – and now PBGC wants these retirees to pay for PBGC’s mistake. That’s just wrong,” said Brown. “These modest pensions are a lifeline for retirees each month and any cuts could be devastating. PBGC shouldn’t be able to make up the cost of its error on the backs of retirees who earned their pensions for a lifetime of hard work. That’s why I will introduce legislation to prevent the PBGC from making these unnecessary cuts under these circumstances.”
According to a news release from Brown’s office, when Delphi’s defined benefit pension plan was terminated, 20,000 Delphi salaried retirees, including 5,000 Ohioans, lost up to 70 percent in benefits. Of the 5,000 Delphi salaried retirees and their families in Ohio, about 1,500 are in the Mahoning Valley.
The PBGC took over the plan of the Delphi Salaried Retirees and determined the level of benefits paid to them, which was later determined to be too high.