Kokomo Tribune; Kokomo, Indiana

Local News

May 4, 2013

Prudential to pay Delphi benefits

Salaried retirees will receive two checks.

Some Delphi salaried retirees will now be getting two benefit checks after Prudential Financial Inc. agreed to take over a portion of the retirees’ payments, the Pension Benefit & Guaranty Corp. announced Monday.

The change won’t affect what each retiree receives, but that hasn’t stopped the Delphi Salaried Retirees Association from launching an investigation.

According to PBGC officials, Prudential will now pay out Part B contributions the retirees made during their years with General Motors and Delphi.

The contributions went into an annuity, and the annuity payments were calculated as part of the benefits the PBGC agreed to take over after Delphi emerged from bankruptcy in 2009.

So instead of receiving the full amount of the benefit in a check from the PBGC, the retirees will get part of the payment from the PBGC and part from Prudential.

The salaried retirees association, which has been fighting the federal administration for a restoration of full pension benefits, is staying quiet so far.

This week, DRSA officials announced they were aware of the change, but had no further comment other than saying they were looking into the legal aspects of the change.

Government officials however, say the change will not affect any of the retirees, other than receiving two checks.

“[The PBGC] has been working for several years with Prudential and [Aetna Life Insurance Company and Metropolitan Life Insurance Company] on this long, complex process,” PBGC officials said in a statement to retirees.

“After PBGC took responsibility for your Delphi pension benefit in 2009, we learned that your benefit had been funded by two separate sources. Most of your benefit was funded by Delphi. However, a small portion was funded by your employee contributions. Your pension plan used your contributions to purchase an annuity for you from an insurance company. This small annuity will now be paid by Prudential.”

Kokomo Delphi retiree James Davis isn’t happy about the change, saying he should be getting the annuity payment on top of what he receives each month from the PBGC.

“Now I learn that all the money I put in during 38 1/2 years of employment does not benefit me or my family at all. It only benefits the U.S. government. I should get credit for that on my taxes!” he said in a letter to the Tribune.

DRSA officials, who miss few opportunities to push for additional pension benefits, might be ready to back that stance.

“The PBGC is an inept, incompetent organization,” DRSA chair Den Black said. “They have to be watched like a hawk.”

PBGC spokesman Jioni Palmer said for the past four years, Prudential has been sending the annuity payments to the PBGC, which then passed the money on to the retirees.

That arrangement is changing at Prudential’s request, he said.

“Prudential felt that because of the agreement they’d made with the Delphi retirees, there was an irrevocable commitment, and the money had to come from them,” Palmer said.

Prudential spokesman Josh Stoffregan said the company cannot change the dollar amount of the annuity payments in the future, per the contract.

Scott Smith can be reached at 765-454-8569 or at scott.smith@kokomotribune.com.

For more on this story and other local news, subscribe to The Kokomo Tribune eEdition, or our print edition

1
Text Only | Photo Reprints
Local News
  • Kokomo man heading to 'Hoosier Millionaire' finale Rick Rhodes is still having a hard time believing his good fortune. On Thursday, the 53-year-old Kokomo man walked away with $13,500 after beating out five other contestants on the “Hoosier Millionaire” live road show in Fort Wayne. “I’m still in sho

    April 18, 2014

  • Dual Credit classes KACC 02 Dual credits give high school students head start on college More area students are enrolling in dual credit classes as a way to get an early start on their college degrees and prepare for the rigor of higher education while still in high school. In the past five years, the number of college credits earned by

    April 18, 2014 3 Photos

  • Email, Internet knocked out at Miami Co. Courthouse PERU -- Basic government services were put on hold for the second time in nearly two months in Miami County after a massive server failure once again knocked out Internet and email access in most departments and offices. The crash hit early last week

    April 18, 2014

  • Early voting underway in Miami Co. PERU -- Miami County officials are reminding residents that early voting is now open for the primary election. Early voting started April 8 and will end May 5, one day before Election Day. Early voting is open from 8 a.m. to 4 p.m. every weekday at t

    April 18, 2014

  • Jackson Street Commons veterans home grand opening set for May 22 Jackson Street Commons, a home for veterans near downtown Kokomo, will host a grand opening May 22. The new $3.6 million facility, located at 322 E. Jackson St., provides permanent housing to 27 previously homeless veterans, said Judy Dennis, executi

    April 18, 2014

  • YMCA nearing design phase completion Development and design of the new 73,000 square foot YMCA should be completed in the next 30 days, YMCA of Kokomo Executive Director David Dubois told the Kokomo Common Council Monday. Dubois said he hopes to begin construction on the new facility by

    April 18, 2014

  • NHS, PJHS named four-star schools Northwestern High School and Peru Jr. High School have found their place among the top schools in the state, with the Indiana Department of Education recognizing them as four-star schools Tuesday. A total of 311 elementary, middle and high schools we

    April 18, 2014

  • NWS-PT041614 Flora Doc1.jpg [Duplicate] The doctor is still in after health group's departure FLORA -- The safe at a downtown bank building, once used for protecting cash and valuables, is now stocked with medical supplies. The former bank office on East Main Street became Flora Family Medicine last month after it was made possible for one lo

    April 18, 2014 2 Photos

  • Students visit courthouse Elementary students gained insight on the inner workings of county government through field trips to the Howard County Courthouse this week. Northwestern School Corp. students visited the courthouse Wednesday, and Western Intermediate School third gr

    April 18, 2014

  • Mac talent show 01 lf Maconaquah students, alumni take the stage for 50th annual variety show

    BUNKER HILL - When students from Bunker Hill and Clay Township schools suddenly found themselves walking the same halls in the new Maconaquah High School, they needed something to rally around as they formed their new school identity. That's when Pow

    April 17, 2014 3 Photos

Latest news
Featured Ads
Only on our website
AP Video
Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Raw: Church Tries for Record With Chalk Jesus Raw: Faithful Celebrate Good Friday Worldwide Deadly Avalanche Sweeps Slopes of Mount Everest Police Arrest Suspect in Highway Shootings Drought Concerns May Hurt Lake Tourism Vermont Goat Meat Gives Refugees Taste of Home Calif. Investigators Re-construct Fatal Bus Cras Mayor Rob Ford Launches Re-election Campaign Appellate Court Hears Okla. Gay Marriage Case
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries