General Motors
National Retiree Association
Over
The
Hill
Car
People
Established 2003
June 5, 2009
IMPORTANT POINTS CONCERNING THE STATUS OF GM BANKRUPTCY FILING
On June 1, 2009, Over The Hill Car People registered its attorney with the Manhattan bankruptcy court where the GM matter is being heard, as it prepares to guard the remaining health-care and pension benefits for 116,000 salaried retirees.
During a conference call with GM personnel on Monday, June 1, 2009, we were provided the following information. If you would like to read the entire minutes from this conference call, please click on this link: http://overthehillcarpeople.com/gmconferencecall060109.htm
Salaried Retiree Benefits and Pension Plans
"Between now and the close of the sale of GM's assets to the New GM, we do not expect there to be any changes to the qualified pension plans, health and life insurance benefits that GM currently provides to retirees, survivors and beneficiaries. It is too soon to know with certainty how benefits for retirees of our [U.S.] operations may be affected once sale to the New GM has been completed. However, we do anticipate a reduction of certain benefits in the future.
We can also provide assurance as to the following:
The assets in GM's qualified pension plan are not available for creditor claims. Federal law protects the funds in qualified pension plans, such as GM's, from the claims of a company's creditors. This means that GM cannot use pension plan assets to meet its obligations or to pay its debts.
Federal law protects qualified pension plans from retroactive changes to plan benefits. Further, qualified pension plans cannot be terminated unless they meet the standards for termination set out by federal law, and a decision to seek to terminate a pension plan would have to comply with those standards. The Pension Benefit Guaranty Corporation also provides an additional layer of protection for defined benefit pension programs.”
"The $300 level benefit is a pension benefit. The GM Retirement Program for Salaried Employees (SRP) is a qualified retirement program, protected under the Employee Retirement Income Security Act of 1974 (ERISA)." As long as GM continues to administer the SRP, this $300 level benefit will remain part of your pension payment.
The Salaried Retirement Program is funded at 95% as of December 31, 2008. GM personnel informed us that, in their opinion, GM would continue to administer this program without interruption.
U.S. TREASURY AND GM SEEK REDUCTIONS IN FIVE BENEFIT AREAS
"General Motors is working with the U.S. Treasury to reduce some retiree benefit obligations by roughly two-thirds. 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. We are currently in discussions with the U.S. Treasury regarding the reductions and we will communicate to the affected employees and retirees as soon as this matter is resolved. It is our intent to address this matter as quickly as we can."
The fact that the government now owns approximately 60% to 70% of GM and has directed GM to make these reductions further complicates our current challenge to protect our hard-earned benefits. Our legal counsel has advised that we need to receive the final documentation from GM before taking further action. We need everyone’s support in our endeavors.
Please forward this to all of your GM friends and encourage them to join our efforts.
Thank you for your support!
Over The Hill Car People LLC
GM National Retiree Association
E-mail:
staff@overthehillcarpeople.com
www.overthehillcarpeople.com
01234060409494