You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

After four years, Delphi retirees get unexpected annuity payments


Delphi salaried retirees are seeing retirement payments from the Pension Benefit Guaranty Corp. change in an unexpected way.

On June 1, some salaried retirees began receiving two pension payments a month instead of one. A second payment is coming from Prudential Insurance Co. of America, based on an annuity General Motors purchased years ago with retirement contributions paid by workers. The annuity reflects those contributions.

The two monthly payments should equal what salaried retirees have been receiving all along, the PBGC told retirees in an April 30 letter. For example, if a retiree was receiving $1,500 monthly, he or she may now be paid $1,300 from the PBGC and $200 from Prudential.

But the change has left some retirees with questions. Why are they receiving the split payments in mid-2013, nearly four years after a then-bankrupt Delphi relinquished its pension obligations to the PBGC?

Den Black — a Piqua native who often speaks for a group of Delphi non-union retirees called the Delphi Salaried Retirees Association (DSRA) — have asked the PBGC for an explanation.

“This is completely out of the blue after three-and-a-half years,” Black said.

“They should have split it out (the payments) from the very, very beginning,” said Tom Rose, a Washington Twp. Delphi retiree who saw his pension cut by 40 percent.

About 20,000 salaried retirees saw their pensions reduced when the PBGC took them over in 2009. The agency has said that federal law caps how much it may pay retirees whose pensions it controls. The DSRA is suing the PBGC in Detroit’s federal court to restore their full pensions.

Philip Langham, PBGC benefits administration and payments director, said it took this long to negotiate with the three insurance companies that had been involved. The money and payments are not new, he said.

“It’s just that the PBGC has been making them (the annuity) payments all along,” Langham said. “It’s not like these are new payments.”

As annuities, the value of the contributions has not increased with time, he added.

Langham called the Delphi bankruptcy a “one-off” — a uniquely complex corporate bankruptcy and pension case for the PBGC.


Reader Comments ...


Next Up in Business

Miamisburg candy store now selling pickle juice soda
Miamisburg candy store now selling pickle juice soda

Are you ready for Pickle Juice Soda Pop? Miamisburg-based Grandpa Joe’s Candy Shop is now selling dill pickle-flavored pop in stores and online. The vintage-style store at 42 South Main St. in downtown Miamisburg has more than 200 bottles of specialty sodas. “If you’re the kind of pickle lover who relishes all things pickled, this...
Waffle House co-founder dies a month after business partner
Waffle House co-founder dies a month after business partner

Both of the founders of Waffle House have died, just two months apart. Co-founder Tom Forkner died earlier this week at 98 years old, just two months after his business partner Joe Rogers Sr. died in early March. Rogers was 97 years old. “Tom will be remembered as a man of honesty and integrity,” Waffle House Chairman Joe Rogers Jr...
Ohio’s largest 100 employers in 2017: Walmart tops the list
Ohio’s largest 100 employers in 2017: Walmart tops the list

Walmart is back on top as Ohio’s biggest employer, regaining the No. 1 spot from the Cleveland Clinic, which usurped the giant Bentonville, Ark.-based retailer last year, according to a new list of the state’s top 100 employers. Walmart — with 173 retail operations, including nearly two dozen in the Dayton area — has 50,500...
PHOTOS: Nearly $1M Washington Twp. home for sale
PHOTOS: Nearly $1M Washington Twp. home for sale

A Washington Twp. house that features panoramic views of a wooded lawn is on sale for nearly $1 million. The home, located at 10765 Falls Creek Lane in the Waterbury Woods subdivision, is listed for $999,000 by Coldwell Banker Heritage Realtors. It sits on three-fourths of an acre property on a cul-de-sac. The 8,350 square feet of living space features...
Time running out on Premier, UnitedHealthcare negotiations
Time running out on Premier, UnitedHealthcare negotiations

Negotiations between southwest Ohio’s largest health system, Dayton-based Premier Health, and UnitedHealthcare, the nation’s largest health insurance company, remained at a standstill Thursday with the first deadline for their contract to expire rapidly approaching. UnitedHealthcare’s contract with Premier hospitals is set to expire...
More Stories