As you know, Delphi has announced that both the hourly and salaried pension plans for Delphi retirees will be terminated and turned over to the Pension Benefit Guaranty Corporation (PBGC) for administration. Allegedly because of promises made to the UAW a decade ago, the New GM will be "topping off" the Delphi hourly plan (i.e., fully funding the plan in conjunction with termination), but not the salaried plan. Many Delphi salaried retirees would suffer very significant reductions in their pensions under the PBGC takeover, though the Delphi Salaried Retiree Association (DSRA) is working to preserve the benefits of their constituents.

The New GM has provided assurances that both the hourly and salaried pension plans for GM retirees have been assumed by the new company and benefits will continue to be paid as scheduled. No indication has been given, however, that the company will be bringing the funding levels to 100%. In addition, GM thus far has provided no information to GMRA or to other organizations regarding the New GM's method of funding future separation programs. GMRA will continue to call for transparency in these matters of utmost concern to all GM retirees.

You'll be hearing more from me soon on our legislative agenda. We need to move the key element of pension asset protection forward to shelter retirees from future financial storms. What is happening now to many Delphi retirees must never be a possibility for GM retirees. We must not permit lightning to strike twice in the same place.