GAO Finds PBGC Followed ‘Usual Actions’ When Terminating Delphi Corp. Pension Plans

The steps the Pension Benefit Guaranty Corporation took when it terminated six of Delphi Corp.'s defined benefit plans in July 2009 were consistent with its “usual actions” for terminating large plans, the Government Accountability Office concluded in a report released Dec. 15.

As a result of the plan termination and statutory benefit limits, “many Delphi retirees will receive less from PBGC than their full benefit promised by Delphi. However, some of those experiencing statutory reductions will still receive their full benefits because of union agreements with [General Motors]. With respect to PBGC’s role in the process, the steps taken to ...