Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Government Takeover of Delphi Pensions Upheld by Sixth Circuit

Sept. 2, 2020, 1:49 PM

Delphi Corp. retirees lost their lawsuit challenging the federal pension insurer’s 2009 takeover of their pension plans, when the Sixth Circuit held the takeover neither required court approval nor violated the retirees’ due process rights.

The Pension Benefit Guaranty Corporation can terminate a distressed pension plan without first receiving judicial approval, the U.S. Court of Appeals for the Sixth Circuit said in an opinion issued Tuesday. Federal law authorizes plan terminations based on court approval, but it also allows the PBGC to terminate a plan through an agreement with the plan administrator, the court said, citing authority from the Second ...