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

Holiday debt blues? Here’s help getting on track
Holiday debt blues? Here’s help getting on track

John North is president of the Dayton Better Business Bureau. With the holidays behind you, the new year is a great time to get your finances back on track if you’ve slipped a bit. By dedicating yourself to using credit responsibly and sticking to a sensible plan, then you can effectively pay down your debt. According to debt.org, total U.S....
New shopping center proposed at long-vacant Springfield site
New shopping center proposed at long-vacant Springfield site

A new retail development is likely coming to the east side of Springfield at a longtime vacant property, the first major commercial growth there in several years. The Springfield Board of Zoning Appeals approved Wednesday night a variance for the former Roberds site in the 3000 block of East Main Street. City documents filed by developer Springfield...
Gmail phishing scam may lead users to give up login info
Gmail phishing scam may lead users to give up login info

A new phishing scam is allowing hackers to gain access to unsuspecting Gmail users' accounts and target their login credentials, according to recent reports. Mark Maunder, CEO of security service Wordfence, described the scam in detail in a blog post, adding that it is also targeting other services beyond Gmail. Tech Times reported that the scam involves...
Millennials spend more on coffee, save less for retirement
Millennials spend more on coffee, save less for retirement

A large number of Millennials spent more on coffee in the past year than they invested in their retirement savings, according to a new study. » RELATED: What makes Millennials tick in the workplace? It may surprise you About 41 percent of the Millennials — ages 18 to 35 — admitted to spending more on coffee than they saved for retirement...
Some worry over impact from health care law repeal
Some worry over impact from health care law repeal

The U.S. House of Representatives on Friday joined the U.S. Senate in passing a budget reconciliation measure that would allow Congress to de-fund key elements of the Affordable Care Act, including tax credit subsidies and federal funding for Medicaid expansion in states like Ohio. While some are rejoicing over the move, replacing President Obama&rsquo...
More Stories