PBGC Takes Over Delphi Pension Plans

Law360, New York (August 11, 2009, 2:12 PM EDT) -- Bankrupt auto parts maker Delphi Corp. has dumped its pension plans into the lap of the Pension Benefit Guaranty Corp., dealing a setback to salaried retirees while adding billions to the federal insurer's tab.

The PBGC officially assumed responsibility Monday for six Delphi pension plans covering 70,000 workers and retirees, putting an end to the agency's suit in the U.S. District Court for the Eastern District of Michigan seeking trusteeship over the plan.

In July, the PBGC indicated that it would assume responsibility for the automakers'...
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