Support for Delphi Retiree Pensions
On June 24, U.S. Representative Mike Turner announced that his office backs a plan aimed at increasing pensions for retired executives from the now-defunct auto parts company Delphi. This proposal is part of a broader spending package currently advancing through the House.
Should the pensions be included in this $1 billion spending bill, it could bring an end to a 17-year struggle concerning these retirees. In a statement, Turner, a Republican from Dayton, emphasized his commitment to addressing the injustices faced by Delphi’s retirees. “My amendment to the National Defense Authorization Act will restore their pensions, and I’m grateful to have the support of the White House in this long fight. I’m working closely with Senator Jon Husted to push this through,” he said.
Husted echoed his sentiments, stating, “It is past time to bring justice to these families, including more than 5,100 Ohioans, and deliver what was promised to them.” However, for the funding to materialize, it must receive approval from both houses of Congress and the signature of President Donald Trump.
The struggle over pensions for Delphi retirees has been ongoing. In January 2022, the U.S. Supreme Court chose not to hear a lawsuit originally filed in 2009 by retired Delphi executives. They had sought to reclaim their pensions, which were jeopardized when the Pension Benefit Guaranty Corporation (PBGC) took over that responsibility during Delphi’s bankruptcy. Unfortunately, the payments retirees received ended up being significantly lower than anticipated.
Those retirees subsequently included the PBGC in a federal lawsuit, but to no avail. In light of these struggles, retirees have repeatedly turned to Congress for a legal resolution, though their efforts for legislative relief have not succeeded.
Interestingly, General Motors, which was formerly the owner of Delphi, compensated the difference between PBGC’s reduced pension payments and what GM had contractually pledged to hourly workers affiliated with the United Auto Workers union. Notably, retirees who received salaries did not harbor any resentment towards union members for receiving their full pensions; they simply sought what they felt was rightfully theirs.
Both Delphi and GM navigated their separate bankruptcy proceedings in 2009 and 2010. By 2017, Delphi was divided, leading to its diminished presence in Dayton. Currently, parts under the Delphi brand are manufactured by Phinia Inc.
