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Compliance June 30, 2008
EBSA Settles $2.2M Bankruptcy Claim for Delphi Pension Plan
June 30, 2008 (PLANSPONSOR.com) - Federal regulators
have worked out a $2.2-million settlement with auto-parts
supplier Delphi Corp. to restore pension plan assets the
government charged were lost by improperly investing stock
dividends.
Reported by Fred Schneyer
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) announced the deal with Delphi to benefit the Delphi Personal Savings Plan for Hourly Employees in the United States.
According to an EBSA news release, the settlement reached in U.S. Bankruptcy Court settles a July 2006 government claim over what regulators charged were assets to the plan lost as a result of investment activities.
EBSA said 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.