DELPHI PENSIONS – Key Events Leading to Plan Terminations, GAO-13-854T, Sep 11, 2013
Why GAO Did This Study
The Delphi Corporation was a global supplier of mobile electronics and transportation systems that began as part of GM and was spun off in 1999. Delphi filed for bankruptcy in 2005, and in July 2009, PBGC terminated Delphi’s six defined benefit pension plans and assumed trusteeship of the plans. Because of the resulting differences in participant benefits, questions have been raised about how PBGC came to terminate the plans, whether treatment for certain Delphi workers was preferential, and the role of Treasury in these outcomes.
GAO’s testimony describes 1) key events related to the termination of Delphi pension plans and the reasons for GM providing retirement benefit supplements to certain Delphi employees, and 2) Treasury’s role in those events. The testimony is primarily based on GAO’s March and December 2011 reports that examined these and other related issues. In preparing these reports, GAO relied on publicly available documents–such as GM and Delphi bankruptcy filings, Treasury officials’ depositions, and company reports to the Securities and Exchange Commission–and on documents received from groups GAO interviewed, including Delphi, GM, the Delphi Salaried Retiree Association, PBGC, and Treasury.