The Detroit News is reporting that a federal judge has thrown out a portion of the lawsuit brought against the federal government by Delphi retirees. The former employees of the automotive supplier brought suit against the federal government after their pensions were terminated in bankruptcy proceedings. U.S. District Judge Arthur Tarnow dismissed claims against the U.S. Treasury Department, Timothy Geithner, the auto task force, Steven Rattner and Ron Bloom, though the judge did allow the lawsuit to continue against the Pension Benefit Guaranty Corporation. The Pension Benefit Guaranty Corporation serves as the federal government's pension insurer.
Delphi Corporation walked away from pensions covering around 70,000 people during the company's bankruptcy proceedings in 2009. The Detroit News reports that those pensions were underfunded by around $7 million and that the Pension Benefit Guaranty Corporation took responsibility for $6.1 million of the deficit. That marks the largest loss in the institution's history. Even so, some pensioners may lose as much as 65 percent of their benefits, including life and health insurance.

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