PBGC transferred about $173 million to two Delphi Corp. pension plans after cashing in letters of credit the agency had received from Delphi, confirmed Jeffrey Speicher, PBGC spokesman. The U.S. Hourly Pension Plan received $122.5 million and the U.S. Salaried Pension Plan received $50 million. Delphi’s total defined benefit plan assets were estimated at $15 billion as of Sept. 30.
The Troy, Mich.-based company had given the Pension Benefit Guaranty Corp. the letters of credit when it received waivers from meeting its pension funding obligations. Delphi on May 9 reiterated its intention to freeze its U.S. hourly and salaried plans when it emerges from Chapter 11 bankruptcy protection and will need no funding waivers.
