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

Minutes of the conference call with Governor Jennifer Granholm of Michigan, April 29, 2009

The GM, Chrysler, Ford, and Delphi salaried retiree group presidents had a phone meeting with Michigan Governor Jennifer Granholm and her automotive specialist, Fred Hoffman.  The governor was very interested in the results of the Auto Task Force meeting the four of us had with Ron Bloom last Friday.  She was extremely empathetic to the plight of salaried retirees, especially Delphi, and offered her full support.  She was appalled with the situation we are all facing as salaried retirees, and advised she will keep our interest in mind in all of her efforts related to the automotive industry activities.

It was stated that salaried retirees should have equitable treatment concerning our health benefits.  We discussed our pension plans and the possibilities that could occur in the event of a bankruptcy.  We all agreed every effort should be made to keep these funds out of the hands of the PBGC (government agency that takes over funds).  She assured us she would make every effort to support our salaried retirees’ funds.  Remember, each of the auto companies pension funds are different and will probably be treated that way.

Here are some facts we discussed with the Governor as they relate to the GM pension fund:

Salary Pension Fund: 95% funded 

Hourly Pension Fund: 84% funded

Average of The Two Funds: 87%

The numbers of salaried and hourly retirees that receive pension payments are:

 Salaried Pension Plan

116,000 Retirees and Survivors receiving payments in the plan

Salaried – age 65 or over – 94,000

Salaried – under age 65 – 22,000

Pensions paid to salaried retirees in 2008 - $2.5 Billion

Hourly Pension Plan

377,000 Retirees and Survivors receiving payments in the plan

Hourly – age 65 or over – 239, 000

Hourly – under age 65 – 138,000

Pensions paid to hourly retirees in 2008 - $6.5 Billion

GM did a great job of investing our pension funds, resulting in a loss of only -11% in 2008.  Most 401K/IRA accounts lost three or four times that amount.  As a result, our salaried pension is in relatively good shape as of December 2008.  We are not experts on pension funds in bankruptcy; but, in our opinion, we should feel secure for many years to come with the high rate of funding we have in our salaried fund (95%).  The PBGC has its own set of problems, being in an under-funded situation as of December 2008.  In our opinion, the PBGC will not want additional responsibilities of pension funds at this time.  Please keep in mind that these are just our thoughts and NO ONE really knows what will happen until a bankruptcy is declared.  You can find a lot of additional pension information at www.overthehillcarpeople.com by logging in and going to the “Members Suite.”  Look for the blue link “Is My Pension Safe” in the “Members Suite.”

In summary, the Governor was very concerned with the status of the salaried retirees and she advised she would assist us where possible.  Folks, your voices have now been heard in Washington with the Auto Task Force and in Michigan with Governor Granholm.  Over The Hill Car People – General Motors National Retiree Association has worked long and hard for your concerns and we feel we have made everyone aware of the plight of the SALARIED retirees.  This is history in the making!  Beginning with the ground-breaking event surrounding the meeting with President Obama’s Auto Task Force and continuing with our conference call with Governor Granholm and other activities, we have made your salaried retiree voices heard. As far as we know, this is the first time in history that the salaried retiree has had representation! 

Regards,

Jack Dickinson, President
Over The Hill Car People, LLC
General Motors National Retiree Association
www.overthehillcarpeople.com  
E-mail: spoacdc1@aol.com

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