A second House committee chairman is demanding that the Obama White House, the Department of the Treasury and the Pension Benefit Guaranty Corp. (PBGC) make public all documents concerning the decision in the government's March 2009 General Motors bailout to aid the pension fund of union workers at the automaker's Delphi parts supplier but not that of management employees.
Nearly 20,000 former Delphi managers and executives lost up to 70 percent of their pensions when GM filed for bankruptcy. Federal officials then oversaw a bankruptcy filing that ended the "old" GM and created a "new" GM, largely with the backing of $50 billion in taxpayer funding.
GM officials claim they decided independently to "top up" the pension fund of Delphi workers and retirees covered by the United Auto Workers (UAW), but not those of the non-union employees and retirees. But documents revealed earlier this year by the Treasury Department's Special Inspector-General for the Troubled Asset Recovery Program (TARP) indicate Treasury and PBGC officials participated in GM's decision-making and kept the Obama White House informed as they did so.
"As you know, the pensions of Delphi salaried retirees were significantly reduced during the restructuring of General Motors (GM), while Delphi union retiree pensions were fully protected," said House Financial Services Committee Chairman Spencer Bachus, R-AL.
"Recent reports have highlighted documents that raise questions about the involvement of the Department of the Treasury during the decision-making process of the PBGC," he said.
"It is my belief that the Delphi retirees, taxpayers and Members of Congress deserve full transparency to learn the extent to which the Administration may have influenced the PBGC's decision-making process," he said.
Bachus' comments came in a letter to House Ways and Means Committee Chairman Dave Camp, who last week demanded the release of all documents related to the Delphi pension decision.