With the release of damaging internal emails, suddenly there’s a new scandal developing in Washington. At the heart of the matter is the Delphi employee pension plans affected by the General Motors bailout. Delphi is an auto parts manufacturing company.
It’s a breaking scandal and the information is somewhat patchwork at this point but apparently, as part of the GM bailout deal, the government allowed union workers’ pensions to remain whole while it chopped the pensions of non-union workers — some 20,000 non-union Delphi workers had their pensions slashed by almost half.
Further, there are hints that the decision was not only made for political purposes (Democrats doing the bump and grind with unions) but that the U.S. Treasury Department, led by confirmed tax cheat Timothy Geithner, was the driving force behind it all.
If true, this presents several problems for the administration. The Pension Benefit Guaranty Corporation (PBGC) is the federal agency charged with independent administration of private-sector benefit issues, not the Treasury. According to 29 U.S.C. §1342, the PBGC is the only government agency legally empowered to initiate pension termination.
Thus, by federal law it should have been the PBGC that made the pension decisions, not Tax-cheat Timmy and the Treasury. The White House and Treasury have consistently denied they were involved claiming it was strictly a PBGC decision. Which bring us to the next obstacle for the administration.
Obama bureaucrats have given sworn testimony before Congress and in federal court claiming the administration had nothing to do with the pension decisions. The recently obtained emails contradict this testimony hinting that Tax-cheat Timmy was the driving force and that White House bumblecrats were in the loop. If true, then the Obama administration willfully mislead Congress and the court.
And sacrificed the pensions of 20,000 America citizens to demonstrate their allegiance to unions.
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