The Detroit News said President Barack Obama had decided to use a recess appointment for his nomination of Gotbaum as director of the Pension Benefit Guaranty Corporation (PBGC).
Blocking normal Senate confirmation was U.S. Senator Sherrod Brown (D-Ohio) who said he objected to how 15,000 salaried retirees from bankrupt auto parts maker Delphi Corp. have been treated since the PBGC took over the Delphi plan last year, the newspaper said.
Delphi Corp. terminated pension plans in July 2009, transferring to the PBGC a $6.7-billion liability for plans covering 70,000 people. Retirees and employees stand to lose $1.2 billion in pension benefits that exceed the maximum covered by the PBGC, according to the news report (see Congress Focuses on Delphi Bankruptcy’s Impact on Workers, Retirees).
Gotbaum can serve until the end of 2011.
« Guardian Announces Enhancements to Critical Illness Plans