July 22, 2009 / 12:18 PM / in 8 years

UPDATE 1-U.S. pension agency to take charge of Delphi plans

DETROIT, July 22 (Reuters) - The Pension Benefit Guaranty Corporation (PBGC) said on Wednesday it would assume responsibility for the pension plans of 70,000 workers and retirees of bankrupt U.S. auto parts maker Delphi Corp DPHIQ.PK.

The U.S. pension insurer said it was stepping in to protect the Delphi pensions because the parts supplier cannot afford to maintain its pension plans and Delphi’s former parent General Motors [GM.UL] has stated it will not assume them.

Delphi, spun off from GM in 1999, filed for Chapter 11 bankruptcy protection in 2005.

The PBGC said it would initiate action to become trustee of the plans, a process that could last up to several months. (Reporting by Soyoung Kim, editing by Gerald E. McCormick)

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