Matthew Boyle of the Daily Caller reports that internal emails show Treasury Secretary Tim Geithner was “the driving force” behind terminating the pensions of 20,000 non-union retirees from the Delphi auto parts manufacturing company, as part of the government’s bailout plan for General Motors. Union workers, on the other hand, “saw their pensions topped off and made whole.”
This decision was supposed to be made by the independent Pension Benefit Guaranty Corporation, which is meant to be free of political influence, so it can represent the interests of private-sector pensioners.
Instead, the Daily Caller unearthed a string of emails that show extensive involvement by the Treasury Department and the White House. In one email, PBGC staffer Joseph House told his associates that he had just spoken with Treasury official Matt Feldman, who said he had “made progress discussing our proposal with a number of key folks in Treasury and at [the] White House, but he has not yet wrapped up his coordination. He indicated that there is an 8 AM call tomorrow that he’ll use to close the communication-loop, and he’s confident he’ll have a fully-vetted Treasury view after that call.”