General Motors pension plan is coming under scrutiny from both Dems and Reps. Isn't that great? Obama is finally getting what he is always blabbing about, Bipartisanship.
An independent investigator will look into the federal government's different treatment of unionized and salaried Delphi retirees' pension benefits. Delphi was a GM supplier, and GM took over Delphi assets and liabilities during the bankruptcy process. GM agreed to "top up" the pensions of Delphi blue-collar retirees (can you say UNIONS, UAW, electrical and communications workers' unions) so they wouldn't lose 30-70% of their benefits. GM did not agree to "top up" the pensions for 22,000 white collar Delphi retirees. Therein lies the problem.
Faster than you can say "Grand Theft Auto," those white collar workers lost 30-70% of their pension, 100% of their health care coverage and 100% of their life insurance.
At the same time GM was slicing and dicing benefits for white collar workers, GM retained 100% of its union pension obligations. To keep the union pensions and benefits in tact GM contributed then and will continue to contribute monthly "top-ups" that are funded by TARP money.
Did you get that? WE ARE GUARANTEEING THAT UNION WORKERS INVOLVED WITH GM WILL GET 100% OF THEIR PENSIONS, HEALTH CARE AND LIFE INSURANCE BENEFITS, WHILE WHITE COLLAR WORKERS GET NOTHING, AT THE SAME TIME THE U.S. IS SLIPPING QUICKLY INTO A FINANCIAL AND ECONOMIC PIT-OF-NO-RETURN.
The big question now is whether Obama Administration officials and Obama himself "pressured the New GM to top-up" the Delphi retiree union pension plans and whether "political considerations played a role in favoring hourly over salaried retirees."
And that is why an investigation has been started by the Treasury Department.
What do you think the answer to that important question will be? Remember, it's Obama's Treasury Department doing the investigating. Anyone have any faith that they will get it right?
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