Delphi $2.2 million Department of Labor retirement plan settlement approved

By Caroline Salls

Pittsburgh, June 30 - Delphi Corp. received court approval of a settlement with the U.S. Department of Labor 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, according to a Department of Labor news release.

"This settlement will ensure that assets are available to pay future retirement benefits for these workers," Secretary of Labor Elaine L. Chao said in the release.

The department said the 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.

The claim and settlement resulted from an investigation by the department's Employee Benefits Security Administration into improperly invested dividends the company failed to properly disclose or correct.

Between 2000 and 2003, the department said dividends were improperly invested in General Motors Corp. stock, rather than in an income fund as required by Delphi's savings plan.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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