Report Challenges GM Bankruptcy Pension Moves

Aug 16, 2013

A government inspector general says President Barack Obama's administration played a key role in the General Motors bankruptcy in 2009 as pensions were cut for salaried Delphi Corp. retirees but not unionized workers and retirees of the supplier.

The report issued Thursday stopped short of saying the administration's role was right or wrong. It made no recommendations.

About 20,000 Delphi salaried retirees - nearly half in Ohio - saw their pensions cut by as much as 70 percent during GM's bankruptcy.

The report says administration officials indicated they acted quickly to avoid GM's failure.

The Treasury Department, which oversaw the president's auto task force, took issue with the IG report. Assistant Treasury Secretary Timothy Massad said the pension decision was made by GM and was "driven by sound commercial reasons."