Statement by PBGC Director Charles E.F. Millard on Expiration of Pension Waivers at Delphi Corp.
FOR IMMEDIATE RELEASE
May 09, 2008
WASHINGTON- Charles E.F. Millard, director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"Delphi management has assured us of their personal and institutional commitment to keep the Delphi pension plans upon emergence from bankruptcy. The PBGC will continue to work with Delphi and its creditors to achieve that goal.
"In the interim, we will act forcefully to protect Delphi's pension plans, especially in light of the company's decision not to seek renewal of its pension funding waivers. We will draw down certain letters of credit and keep liens in place on the company's assets until Delphi has successfully emerged and made its pension plans whole.
"The Delphi plans face growing liabilities that must be met. Delphi expects to transfer some of those liabilities to a plan sponsored by GM. This transfer must take place before Sept. 30, or the company will face significant obstacles in complying with federal pension funding requirements. The PBGC urges all parties to work toward a successful resolution of the pension issues by Sept. 30. "
About the PBGC
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 30,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by PBGC's investment returns.
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PBGC No. 08-36