General Motors
National Retiree Association
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Over the last few days there has been a lot of information about GM in the news. There are a number of sources available where you can find out the latest news and information:
http://email.graction.com/cgi-bin15/DM/y/jd7z0KOLGx0D4Y0nUf0EZ - Court
documents, FAQ’s, press materials
http://email.graction.com/cgi-bin15/DM/y/jd7z0KOLGx0D4Y0nUg0Ea - Progress
reports, headlines, information about the New GM
fastlane.gmblogs.com - Comments and perspective from GM Leader
June 9, 2009
Dear GM Retiree:
As part of GM’s announcements on June 1st, we acknowledged some of the significant sacrifices that our salaried employees and retirees will be making to support the reinvention of General Motors. We also communicated that we would be reducing the obligations for certain retiree benefits by roughly two-thirds.
We have now finalized the changes that we need to make in order to achieve the required two-thirds reduction. As promised, I am sharing this information with you as quickly as possible. These are very difficult changes to make, but unfortunately necessary to position the New GM to win – and win now. These changes are described below. As always, all benefits are at all times subject to the terms of each plan.
Basic Life Insurance in Retirement
For current retirees eligible for Basic Life Insurance in retirement (those whose service date was prior to January 1, 1993) the amount of Basic Life Insurance provided by GM is being reduced to $10,000 (retirees with less than $10,000 will remain at that level of life insurance). This change will be effective on the first of the month following the New GM sale closing.
Retirees impacted by these reductions will have an opportunity to supplement their remaining employer provided Basic Life Insurance by enrolling in a Voluntary Life Insurance program through MetLife. This program will not require “proof of good health”. Enrollment for this program will be in the third quarter of this year.
During the first two years of participation in the program, the death benefit available will be equal to the amount of the premiums paid. Following two years of premium contributions, the full amount of coverage elected will be payable in the event of your death. Details regarding the program will be mailed to you from MetLife in the third quarter.
Non Medicare Retiree Health Care
Effective January 1, 2010, the General Motors Salaried Health Care Program will be further modified for salaried retirees, surviving spouses and their eligible dependents. Individuals impacted by this change include:
· Salaried retirees, surviving spouses and their dependents eligible to enroll or who currently are enrolled in the GM Salaried Health Care Program, and
· Current employees who are eligible to enroll in the GM Salaried Health Care Program upon retirement.
The new plan design will include benefits and coverages for medical and prescription drugs only, and dental, vision, and extended care coverage will be cancelled. Cost sharing provisions (e.g., monthly contributions, deductibles, coinsurance and out of pocket maximums) will increase substantially.
For salaried retirees, the changes will exceed the changes that otherwise would be required under the current salaried retiree cap that was implemented on January 1, 2007. However, this acceleration of cost share is necessary at this time to facilitate GM’s restructuring plan.
In this regard, the 2006 caps have been updated to reflect an additional increase in overall cost sharing. Going forward, the revised caps will be the basis for annual plan design changes necessary to maintain capped levels. When the average costs exceed the revised caps established under the 2010 design, then additional plan changes that affect cost-sharing features of program coverage will be implemented.
Please note that the GM Benefits and Services Center and current GM health plan carriers do not have any additional information regarding these announced changes. Further details of these changes will be communicated directly to impacted employees and retirees in the fall as part of the 2010 Annual Enrollment
I realize the sacrifices that we need to make will be very difficult for you and your families. While the actions we are taking to reinvent GM are many and affect a vast range of stakeholders, the impact on former employees such as yourself, who dedicated so many years to the service of General Motors, is unquestionably very difficult. Much has changed from the Company I joined over 20 years ago, however, I am confident the many steps we are taking will establish a foundation for the New GM that will win in the future. I appreciate your continued support of GM
Sincerely,
Frederick A. Henderson
President and Chief Executive Officer
General Motors reserves the right to change, amend, modify, suspend or terminate its employment practices, policies, employee benefit plans or programs at any time. This document provides general information only. In the event of a conflict with the official plan documents, the plan documents will control.
From:
hrcommunications@gm.com <hrcommunications@gm.com>
Subject: U.S. Executive Retiree Benefit Modifications
To: Master_Exec_Retirees_60__1@gm.com
Date:
Monday,
June 8, 2009,
7:41 PM
Dear GM Executive Retiree:
As part of GM’s announcements on June 1st, we acknowledged some of the significant sacrifices that our salaried employees and retirees will be making to support the reinvention of General Motors. In addition to announcing changes to the amount of non-qualified pension payments for currently retired executives while we are in chapter 11, I also communicated that we would be reducing the obligations for certain retiree benefits by roughly two-thirds.
We have now finalized the changes that we need to make in order to achieve the required two-thirds reduction. As promised, I am sharing this information with you as quickly as possible. These are very difficult changes to make, but unfortunately necessary to position the New GM to win - and win now. These changes are described below. As always, all benefits are at all times subject to the terms of each plan.
Executive Retirement Plan
Currently, all executive retirees with
an Executive Retirement Plan (“ERP”, formerly SERP) benefit have been subject to
a reduction of at least 10% since May 1, 2009. A small number of ERP recipients
may also be subject to a larger reduction as a result of the “cap” on monthly
ERP payments under the chapter 11 court supervised process that commenced on
June 1, 2009.
As of the sale closing date of the New GM, ERP benefits for current retired executives will be changed as follows:
For retirees with an annual combined Salaried Retirement Plan (“SRP”) benefit plus Executive Retirement Plan (“ERP”) benefit of $100,000 or less, the 10% ERP reduction currently in effect will become permanent.
For retirees with an annual combined Salaried Retirement Plan (“SRP”) benefit plus Executive Retirement Plan (“ERP”) benefit over $100,000 annually, the portion of the ERP benefit below $100,000 total (when combined with SRP) will be continue to be reduced by 10%, while the remaining ERP benefit (i.e., the portion above $100,000 total retirement benefits) will be reduced by two-thirds.
There is no change to the benefits you receive under the Salaried Retirement Plan.
Supplemental Life Benefits Program
The Supplemental Life Benefits Program (SLBP)
and Supplemental Group Life Insurance Program (SGLI) for executives in
retirement are being eliminated. This change will be effective upon the New GM
sale closing. Current retired Executives will have an opportunity to purchase
supplemental coverage from MetLife and information regarding this program will
be provided in the third quarter. No “proof of good health” will be required by
MetLife.
Basic Life Insurance
For retirees eligible for Basic Life Insurance in retirement (those whose service date was prior to January 1, 1993) the amount of Basic Life Insurance provided by GM is being reduced to $10,000. This change will be effective upon the New GM sale closing (retirees with less than $10,000 will remain at that level of life insurance). This change will be effective on the first of the month following the New GM sale closing.
Retirees impacted by these reductions will have an opportunity to supplement their remaining employer provided Basic Life Insurance by enrolling in a Voluntary Life Insurance program through MetLife. This program will not require “proof of good health”. Enrollment for this program will be in the third quarter of this year.
During the first two years of participation in the program, the death benefit available will be equal to the amount of the premiums paid. Following two years of premium contributions, the full amount of coverage elected will be payable in the event of your death. Details regarding the program will be mailed to you from MetLife in the third quarter.
Non Medicare Retiree Health Care
Effective January 1, 2010, the General
Motors Salaried Health Care Program will be further modified for salaried
retirees, surviving spouses and their eligible dependents. Individuals impacted
by this change include:
·
Salaried retirees, surviving spouses and their
dependents eligible to enroll or who currently are enrolled in the GM Salaried
Health Care Program, and
·
Current employees who are eligible to enroll in
the GM Salaried Health Care Program upon retirement.
The new plan design will include benefits and coverages for medical and prescription drugs only, and dental, vision, and extended care coverage will be cancelled. Cost sharing provisions (e.g., monthly contributions, deductibles, coinsurance and out of pocket maximums) will increase substantially.
For salaried retirees, the changes will exceed the changes that otherwise would be required under the current salaried retiree cap that was implemented on January 1, 2007. However, this acceleration of cost share is necessary at this time to facilitate GM’s restructuring plan.
In this regard, the 2006 caps have been updated to reflect an additional increase in overall cost sharing. Going forward, the revised caps will be the basis for annual plan design changes necessary to maintain capped levels. When the average costs exceed the revised caps established under the 2010 design, then additional plan changes that affect cost-sharing features of program coverage will be implemented.
Please note that the GM Benefits and Services Center and current GM health plan carriers do not have any additional information regarding these announced changes. Further details of these changes will be communicated directly to impacted employees and retirees in the fall as part of the 2010 Annual Enrollment.
I realize the sacrifices that we need to make will be very difficult for you and your families. While the actions we are taking to reinvent GM are many and affect a vast range of stakeholders, the impact on former leaders such as yourself, who dedicated so many years to the service of General Motors, is unquestionably very difficult. Much has changed from the Company I joined over 20 years ago, however, I am confident the many actions we are taking will establish a foundation for the New GM that will win in the future. I appreciate your continued support of GM.
Sincerely,
Frederick A. Henderson
President and Chief Executive Officer
The Corporation reserves the right, by and through the Executive Compensation Committee of the Board of Directors or its delegate, to amend, modify, suspend, or terminate its executive plans in whole or in part, at any time.
HRCommunications
Sent by: Candice Whitney
06/08/2009 07:54 PM To Master Salaried active and ISP 060_2
Subject Future Benefit Changes for Salaried Employees
Dear GM Salaried Employee:
As part of GM’s announcements on June 1st, we acknowledged some of the significant sacrifices that our employees and retirees will be making to support the reinvention of General Motors. In addition to announcing further business changes, we also communicated that we would be reducing the obligations for certain retiree benefits by roughly two-thirds.
We have now finalized the changes that we need to make in order to achieve the required two-thirds reduction, and so I wanted to share this information with you as quickly as possible. These are very difficult changes to make, but unfortunately necessary to position the New GM to win - and win now.
Please note that the changes described below are only applicable to active salaried employees who will retire in the future. Employees who are already retired will be receiving separate communications regarding changes applicable to them later this week.
I realize the sacrifices that we need to make will be very difficult for you, and your families. Much has changed from the Company I joined over 20 years ago, however, I am confident the many steps we are taking will establish a foundation for the New GM that will win in the future. I appreciate your continued commitment, and know that each of you will do whatever it takes to make this our opportunity to win again.
Basic Life Insurance in Retirement
Salaried employees currently have Basic Life Insurance, provided by GM, equal to two times annual base salary. The two times annual base salary while active remains unchanged.
For employees with a service date prior to January 1, 1993, the amount of Basic Life Insurance provided by GM in retirement (for retirements after the sale closing date) will equal 50% (previously 75%) of the annual base salary.
Non Medicare Retiree Health Care
Effective January 1, 2010,
the General Motors Salaried Health Care Program will be further modified for
salaried retirees, surviving spouses and their eligible dependents. Individuals
impacted by this change include:
· Salaried retirees, surviving spouses
and their dependents eligible to enroll or who currently are enrolled in the GM
Salaried Health Care Program, and
· Current employees who are eligible to
enroll in the GM Salaried Health Care Program upon retirement.
The new plan design will include benefits and coverages for medical and prescription drugs only, dental, vision, and extended care coverage will be cancelled. Cost sharing provisions (e.g., monthly contributions, deductibles, coinsurance and out of pocket maximums) will increase substantially.
For salaried retirees, the changes will exceed the changes that otherwise would be required under the current salaried retiree cap that was implemented on January 1, 2007. However, this acceleration of cost share is necessary at this time to facilitate GM’s restructuring plan.
In this regard, the 2006 caps have been updated to reflect an additional increase in overall cost sharing. Going forward, the revised caps will be the basis for annual plan design changes necessary to maintain capped levels. When the average costs exceed the revised caps established under the 2010 design, then additional plan changes that affect cost-sharing features of program coverage will be implemented.
Please note that the GM Benefits and Services Center and current GM health plan carriers do not have any additional information regarding these announced changes. Further details of these changes will be communicated directly to impacted employees and retirees in the fall as part of the 2010 Annual Enrollment.
Sincerely,
F. A. Henderson
01234060909596