At Kildee's Urging, House Votes to Stop Scheduled Cuts to Health Benefits for Delphi Retirees

Continues long time advocacy for workers and retirees hurt by Delphi bankruptcy

WASHINGTON, DC – After Congressman Dale E. Kildee led the fight for action, the House of Representatives passed legislation to extend the Health Coverage Tax Credit to protect thousands of Delphi retirees from seeing drastic increases to their health costs. As part of his advocacy on behalf of Delphi retirees, Congressman Kildee sent a letter to House Speaker Nancy Pelosi and House Minority Leader John Boehner and introduced H. Res. 1628, to push for an extension of the credit.  H.R. 6517, the Omnibus Trade Act, passed the House yesterday and will extend until June 30, 2012 the Health Coverage Tax Credit, which pays 80 percent of health premiums for Delphi retirees under the Pension Benefit Guaranty Corporation. This legislation must now be passed by the Senate before it can be signed into law.

“I am very pleased that House leadership has heeded my call to extend the Health Coverage Tax Credit to protect thousands of Delphi retirees from seeing their health costs skyrocket. Too many Delphi workers and retirees –including 11,000 in my district alone - are struggling due to Delphi’s bankruptcy. Continuing this tax credit will be very helpful to these workers and retirees who are struggling through this difficult economic climate through no fault of their own. I urge my Senate colleagues to follow suit and pass this legislation so that it may be signed into law,” said Congressman Kildee. 

Congressman Kildee has long been a staunch advocate for Delphi retirees. At Congressman Kildee’s urging, the House Education and Labor Committee held a hearing into the Delphi bankruptcy and its effect on workers and retirees. The Congressman has also sent several letters to the Administration urging them to help make Delphi salaried retirees’ pensions whole. Congressman Kildee is also a co-sponsor of H.R. 6046, which requires the Auto Task Force, PBGC, and the Treasury Department to provide all relevant information to the Government Accountability Office (GAO) on their decision regarding Delphi Salaried Retirees to help further the investigation into this issue.

The text of Congressman Kildee’s letter to House Leadership is as follows:

September 14, 2010

The Honorable Nancy Pelosi                     The Honorable John Boehner
Speaker                                                      Minority Leader
U.S. House of Representatives                  U.S. House of Representatives
H-232 The Capitol                                      H-204 The Capitol
Washington, D.C. 20515                            Washington, D.C. 20515

Dear Speaker Pelosi and Minority Leader Boehner:

I write to you today to urge the U.S. House of Representatives to take up legislation by the end of the year to extend the Health Coverage Tax Credit that was expanded by the American Recovery and Reinvestment Act. The Health Coverage Tax Credit is necessary to help the thousands of Delphi retirees who have recently lost their health insurance due to the restructuring of the auto industry.

Delphi Corporation entered bankruptcy protection in 2005. In February 2009, Delphi salaried retirees lost their healthcare benefits for themselves and their families. Just months later, the Pension Benefit Guaranty Corporation terminated Delphi’s pension plan and became the trustee, causing drastic reductions in retiree pension benefits.

Fortunately, retirees over age 55 receiving pension benefits from the PBGC are eligible to receive the Health Coverage Tax Credit. The HCTC pays a percentage of qualifying health insurance premiums for eligible individuals and their families. The Recovery Act expanded the HCTC to pay 80 percent of qualified health plan premiums. This expansion has helped many Delphi retirees receive the necessary healthcare they would not otherwise be able to afford after the loss of their health insurance.

The HCTC was enacted by Congress in 2002. While there is no sunset provision in the HCTC legislation, payment for the tax credit is contingent upon funding for the Trade Adjustment Assistance Program (TAA). The Recovery Act included the Trade Adjustment Assistance Health Coverage Improvement Act that funded and expanded the HCTC. Unfortunately, this legislation is set to expire at the end of 2010. If we do not act, thousands of Delphi retirees and other individuals will see dramatic increases in their health insurance premiums.

Extending the HCTC must be a priority in the final months of the 111th Congress. I hope you will work with me to help the Delphi retirees and thousands of other individuals who benefit from this program.

Sincerely,

Dale E. Kildee, M.C.
Cc:    

The Honorable Sander M. Levin, Chairman of the Committee on Ways and Means
The Honorable Dave Camp, Ranking Member of the Committee on Ways and Means
The Honorable David R. Obey, Chairman of the Committee on Appropriations
The Honorable Jerry Lewis, Ranking Member of the Committee on Appropriations


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