PBGC asks U.S. Supreme Court to deny hearing for Delphi salaried retirees

WASHINGTON - A government-created group formed to insure company pensions continues to fight efforts by retired Delphi Automotive salaried workers to recoup pension benefits lost when their employer went bankrupt.
The Pension Benefit Guaranty Corporation has filed a brief with the U.S. Supreme Court opposing the Delphi Salaried Retirees Associations' request to have the justices hear their claims against a 2009 decision not to cover pensions for 21,000 salaried retirees after Delphi, formerly Packard Electric went bankrupt.
The PBGC argues that an appeals court and other courts have ruled that the Employee Retirement Income Security Act permits terminations of pension plans under the agreement with plan administrators.
The PBGC also denies that the salaried retirees’ due process rights were violated, claiming the Delphi workers had an opportunity to fight termination of their pensions during the bankruptcy court proceedings.
Finally, the PBGC disputes the retirees’ contention that the decision to terminate the pensions was arbitrary and capricious, noting that the lower courts considered the petitioners' arguments based on a review of the record.
The retirees are getting support for their effort from several members of Congress including Representatives Bill Johnson, Tim Ryan as well as Senators Rob Portman and Sherrod Brown.
Attorneys General from several states, including Ohio's have filed briefs supporting the retirees.
If the court does not decide to hear the case, some lawmakers say they will still try to use legislation to help the retirees.