Salaried GM Retirees Request Bankruptcy Court
Voice
June 8, 2009 (PLANSPONSOR.com) - With a reduction in
some retiree benefits by about two-thirds a possibility, a
group of retired General Motors salaried employees has asked
to be granted a say in the auto giant's
restructuring.
A Detroit Free Press story said the retiree group
has asked a bankruptcy judge to appoint an official panel
to represent their interests as GM reorganizes its
business. "The unfairness of hourly retirees keeping
their benefits and even getting a stake in New GM to fund
their health benefit trust, while salaried retirees
receive no protections, also cries out for the need for
salaried retiree representation," the group's court
filing said, according to the newspaper.
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The company has toldnon-United Auto Worker (UAW) retirees that the
company is talking to government officials about reducing
some retiree benefits by roughly two-thirds.
itxtvisited="1">"This reduction will impact salaried
retiree life insurance, salaried retiree health care,
executive non-qualified pension, executive retiree life
insurance and non-UAW hourly life insurance and we are
still working on how to accomplish this in the most
appropriate way," GM told retirees this week, according to
the Free Press. "It is our intent to address this matter as
quickly as we can," the company added.
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Tom Wilkinson, a GM spokesman, told the newspaper the
effort does not involve the company's qualified pension
plans.
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GM has about 116,000 retired salaried workers and
surviving spouses, he said. A motion filed on behalf of the
GM Retirees Association called the benefits "almost
irreplaceable."
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The company is also making changes to UAW retiree
health care benefits. According to a recent UAW summary of
contract changes, that will include the elimination of
dental and vision programs.
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The Free Press said health coverage for hourly
retirees are to be paid for through a trust that GM and the
UAW agreed to in 2007 that now will be funded with the
trust receiving a 17.5% stake in a reconstituted GM (see
GM Retirees to Get Health Coverage from VEBA
).
Fred Schneyer
editors@plansponsor.com