The PBGC announced July 22 that it will become trustee of the pension plan because automotive parts producer Delphi — in Chapter 11 bankruptcy for nearly three years — can’t afford to maintain the plans. Speicher said the PBGC became the trustee for the pensions Monday.
In the next few days, the government will examine the pension plan records for 70,000 domestic workers and retirees of Delphi, Speicher said.
During the next several months, the PBGC will calculate benefits for Delphi retirees.
Not everyone will see changes in their pension payments, but Speicher cautioned that early retirees in particular may see benefit cutbacks. The legal limit the PBGC may pay out to 65-year-olds in 2009 is $54,000 annually, he said.
“The ceiling is lower for people who retire at younger ages,” Speicher said.
The worst thing retirees can do while the PBGC calculates their future benefits is nothing, said David Kay, a Washington Twp.-based financial adviser.
Kay suggests retirees track spending for a month, creating a budget that distinguishes between fixed costs like home and car payments and what he called “luxuries.”
“At least be proactive instead of reactive,” Kay said.
There will be no interruption to pensions while the government is calculating benefits, Speicher said. Delphi’s agent should continue making the pension payments, he said.
During the next few weeks, all Delphi retirees should receive an “information packet,” he added.
The PBGC has said it will be responsible for a total $6.2 billion in Delphi pension underfunding.
Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.
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