COLUMBUS — Ohio and Michigan lawmakers have proposed a bill in Congress aimed at restoring the pension benefits for over 20,000 former Delphi employees, according to a report from the Associated Press.
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The bill, which lawmakers said has bipartisan support, follows the decision by the U.S. Supreme Court in January to decline the retirees’ final legal appeal against the bankrupted auto parts manufacturer, the AP reports.
The bill was proposed in the Ohio’s U.S. Senators Rob Portman, and Sherrod Brown. In the House, Ohio Representatives Tim Ryan and Mike Turner and Michigan Rep. Dan Kildee introduced companion legislation, according to the AP.
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The legislation, if passed, would require the U.S. Treasure to make up the difference between the partial retirement benefits Delphi retirees were granted by the U.S. Pension Benefit Guaranty Corp., following General Motors’ bankruptcy in 2009. GM cut pensions by as much as 70 percent on the grounds they couldn’t pay more than the statutory maximum amount, according to the AP report.
The proposed bill would also provide a lump sum payment for the difference between what they were paid and what they were owed without plus 6 percent interest. Additionally the bill would allow incomes takes on the payout to be spread over three years. Full pension payments would resume after, according to the AP.
Michigan and Ohio have the largest concentrations of affected Delphi retirees, with over 5,800 in Michigan and over 5,100 in Ohio, the Associated Press reports.