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Updated: 7:58 p.m. Wednesday, Oct. 3, 2012 | Posted: 11:33 a.m. Wednesday, Oct. 3, 2012

House chairman: Treasury ‘clearly involved’ in Delphi pensions decision

By Thomas Gnau

Staff Writer

The chairman of the House Ways and Means Committee said his study of documents from the U.S. Treasury and the Pension Benefit Guaranty Corp. shows that Treasury was “clearly involved” in the decision that cut the pensions of Delphi salaried workers.

Also, committee Chairman Dave Camp said Treasury is “withholding” information from his committee and the public.

The issue has affected hundreds of Dayton-area Delphi retirees since then-bankrupt Delphi relinquished its pension obligations to the PBGC in 2009. The move cut pension payments for managerial and non-union Delphi retirees.

But General Motors, which once owned Delphi, paid the difference between lower pension payments and contractual amounts for union-represented retirees. Salaried retirees have challenged the legality of GM “topping off” union pension amounts while in bankruptcy.

Last week, the PBGC rejected the salaried retirees’ suggestion of non-binding mediation after several weeks of talks. The retirees are suing the PBGC in federal court for full restoration of their pensions.

While the PBGC provided a “nearly complete” response to Ways and Means’ request for documents on the issue, Treasury provided an incomplete response and the White House “provided no documents, but claimed Treasury was responding on its behalf,” a press release from the committee said Wednesday.

“Treasury was clearly in the center of the decision to terminate the pensions of Delphi’s salaried workers,” Camp said in his committee’s statement. “Instead of selectively releasing some documents and withholding others, Treasury should release all documents without further delay” and say why it believed the salaried employees were not entitled to their full pensions.”

Treasury and Obama administration spokespeople have long insisted that they had nothing to do with the disposition of Delphi pensions.

“As we have previously stated, the termination of the Delphi salaried pension plan was made by the PBGC in accordance with its standard procedures and applicable laws — not by Treasury. Although the Delphi bankruptcy was very difficult for its employees and retirees, the actions Treasury took to support the American auto industry helped save more than a million American jobs during a period of economic crisis,” said Treasury spokesman Matthew Anderson in an email.

U.S. Rep. Mike Turner, R-Centerville, said the finding “confirms … the Treasury Department oversaw a backroom, politically motivated deal to slash salaried worker pensions.”

The House Oversight and Government Reform Committee, on which Turner serves, has requested that Treasury turn over documents by Oct. 9.

Camp provided a timeline showing what he claimed were instances when Treasury, PBGC and GM officials communicated with each other over the fate of Delphi’s pension obligations.

“Emails so far produced show at least 34 phone conversations and 11 in-person meetings that took place among PBGC Treasury and GM officials,” the said the statement from Ways and Means. “Why have no notes been produced, and what took place in these meetings and calls?”

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