General Motors National Retiree Association
Over The Hill Car People 
Established 2003 

July 2009 - Auto Task Force Meeting Summary

GM National Retiree Association - Over The Hill Car People had its second meeting with the Auto Task Force in Washington, D. C. this week.  The meeting was attended by the presidents of the retiree groups of Ford, Delphi, Chrysler and GM - Over The Hill Car People.  Ron Bloom, Brian Deese and Matt Feltman of the Auto Task Force were present for the meeting in the U. S. Treasury Building.  The retiree presidents reminded the Task Force members that we were a unique and distinct group of retirees deserving equitable treatment and consideration.  While we don't represent all of the over 200,000 GM, Ford, Chrysler and Delphi salaried retirees affected by the auto industry crisis, our membership encompasses a very broad cross section of this group.

The retirees made a presentation outlining the sacrifices made by salaried retirees and asked that all retirees (salaried and union) be treated equitably in the auto industry restructuring efforts.  We requested fair and equitable treatment for all GM, Chrysler, Ford and Delphi salaried retirees without regard to their status as hourly or salary retirees and all future modifications should also be equivalent.  We asked that there be no further reductions in present benefits for GM and Chrysler salaried retirees while the Federal loans are outstanding.  Numerous other benefit/pension topics were discussed including the bankruptcy of Ford's Visteon, and Delphi made a special plea for assistance with their dire situation.  Delphi salaried retirees, as you will recall, have lost all health benefits, life insurance and their pensions have been turned over to the PBGC for administration.  This will result in many Delphi retirees seeing pension reductions of 40% to 70%. 

Mr. Bloom advised they had taken every factor into consideration with their efforts to bring GM and Chrysler out of bankruptcy as quickly as possible.  He stated that President Obama's first priority was to make certain GM & Chrysler not only survived, but thrived as profitable companies.  He stated this could not happen without sacrifices from everyone involved.  We also emphasized that our first concern was the survival of the companies and the American auto industry as well.  However, we did not feel that salaried retirees had received fair and equitable treatment during the restructuring.  Mr. Bloom and the others understood our position, but advised that all actions taken by the Task Force were done to comply with the law/labor contracts in order to make the companies survive.  He stated that all parties had to make the sacrifices required or GM & Chrysler would not only fail in bankruptcy, but would be required to liquidate.  He reminded us that it could have been much worse for all retirees if the companies were allowed to fail.

Jack Dickinson asked Mr. Bloom what salaried retirees under the age of 65 could expect with regard to the 2/3 cuts in benefits to be announced this fall by GM.  We were pleased to hear that these retirees will not receive a full 2/3's increase in co-pays, deductibles and premiums.  He stated that this group of retirees had been given consideration and the full 2/3's cuts were not applied.  Dickinson also questioned Bloom about the GM pension plan and was assured the pension plan was well funded and no plans were being considered to turn the GM pension plans over to the PBGC.  Mr. Bloom was very complementary of GM's efforts with the management of their Salaried Retiree Program (pension plan).  You may recall that GM has stated the pension plan will go to the new GM and was 95% funded as of December 2008.

Bloom advised that the best course of action for now would be to pursue a change of laws and introduction of legislation beneficial to all retirees.  We advised him of our meetings with Congressional leaders while we were in Washington and he complemented our efforts in this area and encouraged continuation of this activity.

We did visit in the offices of several Congressional leaders and their representatives while we were in Washington and we encourage you to write your Congressional leaders requesting their support for salaried retirees. 

    Christopher J. Lee (R) - Congressman From New York

    Brain Schubert - Chief of Staff

    Elizabeth Mortenson - Legislative Assistant

    Sherrod Brown - Senator From Ohio

    Moria Lenehan-Razzuri - Legislative Assistant

    Timothy P. O'Toole - Pension Specialist Attorney

    Anthony F. Shelley - Pension Specialist Attorney

A few of the areas of concern we discussed with the above professionals are listed below:

Please support our efforts working with the Congress to:

Extend Health Coverage Tax Credit (HCTC) eligibility to all retirees who lose employer subsidized health insurance without the requirement for their Pension to Default to the PBGC

Enact or revise laws that prevent the loss of Health Care Insurance, Life Insurance and Pensions 

Give health Insurance and pensions priority status in bankruptcy

Eliminate the ability of employers to unilaterally insert “Right to Terminate” clauses into corporate OPEB benefit plan documents

Close loopholes that allow the use of qualified pension plan monies to Pay for “Non-Pension” Expenditures.  - i.e. Severance Payments, Early Retirement Supplements and Buy Outs

Our message requested urgent and immediate legislative actions to correct the obvious deficiencies in the current laws that govern the protection of Salaried Retirees!  We expressed our appreciation to these Senators/Representatives for their advice and for writing letters of support to President Obama and the Auto Task Force concerning our request for the salaried retiree groups to meet with the Auto Task Force.  Please consider writing these Congressional Leaders to thank them for supporting you!

Regards,

Jack Dickinson, President
Over The Hill Car People, LLC
General Motors National Retiree Association
www.overthehillcarpeople.com  
 

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