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Administration September 25, 2008
Court OKs Delphi Settlement With EBSA
September 25, 2008 (PLANSPONSOR.com) - The U.S.
Department of Labor and Delphi Corp. have obtained approval
of a settlement that restores money to a savings plan lost as
a result of investment activities.
Reported by Nevin E. Adams
The U.S. bankruptcy court in New York has approved the plan that allows the government to recover more than $2.2 million in retirement plan assets owed to the Delphi Personal Savings Plan for Hourly Employees in the United States (see EBSA Settles $2.2M Bankruptcy Claim for Delphi Pension Plan ). The bankruptcy settlement resolves a claim brought by the Labor Department on July 31, 2006, seeking to restore assets to the savings plan lost as a result of investment activities.
“This settlement will ensure that assets are available to pay future retirement benefits for these workers,” said Secretary of Labor Elaine L. Chao in a press release.
The claim and settlement resulted from an investigation by the department’s Employee Benefits Security Administration (EBSA) into improperly invested dividends the company failed to properly disclose or correct. Between 2000 and 2003, dividends were improperly invested in General Motors Corp. stock, rather than in an income fund as required by Delphi’s savings plan, according to an EBSA press release .
In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.
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