A trust has been formed that will allow eligible retirees of auto parts manufacturers — including Delphi — to benefit from lower-cost health care benefits, a law firm has announced.

A U.S. bankruptcy court in New York authorized the creation of the Auto Retiree VEBA (Voluntary Employee Benefit Association) Trust), the first “industry-wide” VEBA created to provide tax credits for health insurance, the firm said. Usually, VEBAs — trust funds created to support benefits — are associated with single companies or unions.

The VEBA is open to salaried and hourly retirees between the ages of 55 and 65 who worked for auto parts manufacturers headquartered in, or remaining in, Ohio, Michigan and Wisconsin, and who have had their pensions transferred to the Pension Benefit Guaranty Corp (PBGC).

“Tens of thousands” of Ohio retirees could benefit from the new VEBA, estimated Cathy Cone, owner of Houston, Texas-based Cone Insurance, which specializes in the Health Care Tax Credit, a federal subsidy for retirees who have lost their pensions to the PBGC.

Retirees of Delphi, Allis-Chalmers, Amcast, Collins & Aikman, Haynes-Lemmerz International and dozens of other companies would be eligible, according to a San Francisco law firm, Farella Braun & Martel.

The VEBA affects “thousands” of eligible Ohio auto parts retirees, said a spokesman for the firm, which represented Delphi salaried retirees in a legal bid to restore their health and life insurance benefits.

In 2009, then-bankrupt Delphi ended health and life insurance benefits for salaried retirees and turned its pension obligations over to the PBGC. Hourly, union-represented retirees from Delphi saw their health benefits cut, but their pensions remained whole.

Salaried retirees banded together to hire the law firm and restore benefits. Those retirees are also suing the U.S. Treasury Department and others to restore their full pensions.

Cone said the VEBA will be open to both hourly and salaried retirees and anyone receiving a pension check from the PBGC in the eligible age range.

“We cover the gamut, really, on most of the auto industry,” she said.

Health coverage will be rolled out Jan. 1. The benefit will be introduced in “road show” visits to cities with Delphi and other auto parts plants.

“We’re looking at Dayton” for a visit, Cone said.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.