Government Broke a Viable Delphi Salaried Pension Plan
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House and Senate bills H.R.1357, H.R.1895, S.1950 call for restoring a pension plan that was wrongfully terminated by the U.S. Government under the Obama administration.
A traditional Pension Benefit Guaranty Corporation (PBGC) pension termination occurs when the PBGC itself initiates the termination of a company’s failed pension plan. This termination was uniquely different.
This Would NOT Be a Bailout of a Troubled Pension Plan
The Delphi Salaried Retirees Pension Plan (DSRP) was a traditionally well-funded and well-managed plan when terminated by the PBGC in mid-2009. According to a credentialed actuarial firm, it was more than 86% funded 10 months prior to termination. The DSRP’s funding status at that time was no worse than the vast majority of other similar pension plans whose valued assets had also plummeted temporarily because of the 2009 recession.
Restoring This Pension Plan Would NOT Set a Precedent for other Plans
Extraordinary circumstances surrounded the U.S. Government’s 2009 termination of the Delphi Salaried Retirement Plan (DSRP), unlike any other. The Government made an unprecedented decision in 2009 to intervene in the private GM bankruptcy. But GM’s biggest supplier, Delphi Corp., was working through the final steps of its own bankruptcy, so the Government interfered in that, too. After a rushed 40-day bankruptcy, the government’s influence on the PBGC resulted in GM salaried and hourly pensions being protected as well as most Delphi hourly pensions. But it was Delphi salaried retirees who were singled out for pension termination. This termination was uniquely different from every normal pension termination initiated by the PBGC. Government picked winners and losers!
Conclusion: The PBGC didn’t initiate the salaried pension plan’s termination because it was failing. It yielded to the Administration’s plan to rescue General Motors. Protecting these retirees took a back seat. Please see our “Congressional Intent” document with PBGC testimony showing how ERISA law was not followed, and the PBGC failed to protect retirees.
Sen. Husted Introduces Delphi Salaried Retirees Pension Bill
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Sen. Husted Introduces Senate Bill S.1950.
WASHINGTON – Sens. Jon Husted (R-OH), Kirsten Gillibrand (D-NY), Bernie Moreno (R-OH) and Gary Peters (D-MI) introduced the Susan Muffley Act of 2025. Cosponsoring are Sen. Tammy Baldwin (D-WI), Sen. John Fetterman (D-PA), and Sen. Roger Wicker (R-MS). This bipartisan, bicameral bill would restore the pensions of more than 21,000 Delphi salaried retirees, including approximately 5,180 in Ohio.
“Delphi salaried retirees were robbed of their pensions and the stable retirement they worked hard for throughout their careers. It’s right and fair to ensure these workers—including more than 5,100 Ohioans—receive the pensions they earned,” said Husted.
Spartz Introduces Delphi Retirees Pension Restoration Act
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Rep. Spartz Introduces Additional Bill for Restoration of Delphi Salaried Retirees’ Pensions
March 7, 2025
Congresswoman Victoria Spartz (IN-05) and 13 of her House colleagues introduced bipartisan legislation to fully restore retirement benefits of the Delphi retirees. – H.R.1895.
"This bill restores retirement benefits for thousands of hard-working Americans wronged by the politics of an auto-industry bailout in 2009 with no fiscal impact to the taxpayers," said Spartz."“This issue has not been resolved for too long, and I appreciate the bipartisan support to finally bring justice for so many people around the country."
Susan Muffley Act 2025 Introduced in the House
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Rep. Turner Reintroduces Bill to Restore Delphi Salaried Retirees’ Pensions
February 13, 2025
WASHINGTON, D.C. – Today, Congressman Mike Turner (OH-10) joined representatives Marcy Kaptur (OH-09), Claudia Tenney (NY-24), and Gwen Moore (WI-04) to reintroduce the Susan Muffley Act of 2025 – H.R.1357.
This bipartisan effort is aimed at restoring pensions for over 21,000 Delphi Salaried Retirees, including approximately 5,180 in Ohio. Named in honor of the late wife of a Delphi retiree, the legislation seeks to provide financial relief to those whose pensions were reduced or eliminated following Delphi’s bankruptcy.
“I have remained steadfast in my fight to restore the pensions of Delphi Salaried Retirees,” said Congressman Mike Turner. “While this has been a long time coming, the strong bipartisan support gives us hope that we can finally right this wrong for those who lost their pensions.”