GAO Launches Probe Of Massive Delphi Pension Cuts

Law360, New York (October 6, 2010, 6:12 PM EDT) -- The U.S. Government Accountability Office has agreed to investigate whether the U.S. Department of the Treasury improperly slashed pension plans for nonunion retirees of General Motors Co. spinoff Delphi Corp. during the auto giant's bankruptcy proceedings.

In a letter sent Friday to two members of Congress, the GAO said it would begin an inquiry comparing the government’s process for terminating certain Delphi pension plans with the Pension Benefit Guaranty Corp.’s system for cutting more complex plans.

The probe comes at the request of House Minority Leader...
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