A new proposal to sell $1 billion of government-held General Motors stock to help restore Delphi white collar retirees pensions was balked at by one group attempting to build up the underfunded pension.
The Delphi Salaried Retires Association has said it would prefer to reestablish its pension fund through other methods than selling government stock. Den Black, chairman of the association, said the organization would prefer to refund the pension without using taxpayer money or undergo the slow legislative process. However, Ohio Senator Sherrod Brown (D-OH) was still planning to introduce the bill to help get money for the pension.
In any case, the retiree pension fund will need an infusion it is to meet its original obligation. When the supplier went into bankruptcy in 2005, it ended up leaving 21,000 nonunion retirees with a billion dollar shortfall. The pension was moved into government hands and many retirees have still not received their pension checks.Permalink | Email this | Comments