PBGC Director Millard Comments on Announced Pension Transfer from Delphi to General Motors
FOR IMMEDIATE RELEASE
September 12, 2008
WASHINGTON- Charles E.F. Millard, Director of the Pension Benefit Guaranty Corporation, today issued the following statement on the announcement of an agreement between Delphi and General Motors to transfer $3.4 billion of Delphi's pension liabilities to GM:
"This is a very encouraging step in the right direction. As we have always noted, the transfer of a large amount of pension liabilities to GM is a crucial element in restoring Delphi's financial health. We look forward to working with all stakeholders to help ensure Delphi's successful emergence from bankruptcy."
As insurer of America's private defined benefit pensions, the PBGC takes an active role in corporate bankruptcy proceedings on behalf of workers whose pension plans are not fully funded. Since 2005, the PBGC has worked with 13 auto parts companies that have emerged successfully from Chapter 11 protection without terminating their pension plans. These include Federal Mogul Corp., Tower Automotive and Dana Corp.
The 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 investment returns.
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PBGC No. 08-45