- Connect
- Login
- Print Subscription
|
Welcome,
| |
| |
- Most Commented
- Most Commented
- Most Emailed
- Most Emailed
- Popular
- Popular
« News Home
IUE, GM reach deal on pensions pensions
PROPOSED DEAL
IUE pensions, health care
The deal with General Motors calls for International Union of Electrical Workers retirees who are under 65 to pay these monthly amounts for health-care coverage:
$95 for a single retiree.
$140 for a retiree and spouse
$180 a month for a family plan.
Deductible: $2,500 for a single person or $5,000 for a family.
After that amount is reached, the plan would cover 80 percent of expenses for network care or 60 percent for nonnetwork care. Out-of-pocket maximums, however, would be $3,500 for a single person or $7,000 for a family.
Source: IUE
GM has agreed to make payments to restore full pensions to hourly retirees of Delphi.
It appears that hourly retirees of Delphi Packard Electric will salvage all of their pensions as well as some of their health-care benefits.
Jim Clark, president of the International Union of Electrical Workers, said Tuesday the union reached a deal with General Motors and the U.S. Treasury for GM to pay the benefits.
The deal, however, does not cover salaried retirees, who also are losing benefits.
A big part of the deal is the payment of “top-up” amounts to cover all pension benefits that aren’t covered by a federal agency that is expected to take over Delphi pensions.
The health-care plan, however, would be more expensive than the current plan, which remains in effect to Dec. 31.
Still, the deal is good because it restores pensions, said Bob Sutton, an IUE staff representative who used to be a union official with IUE Local 717 in Warren.
“The pension benefits are great because at least our Delphi retirees can afford to pay for their health care, even though it means they will have to pay more for it,” he said.
The deal is not quite done yet, however.
Susan Garavaglia, a GM spokeswoman, said some final details need to be worked out so GM won’t comment on it until at least today.
The agreement also must be approved by a bankruptcy court judge.
The retirees have been outraged since July when Delphi said it was canceling health-care benefits and planning to turn over pensions to the federal Pension Benefit Guaranty Corp.
Delphi has been in bankruptcy court for four years.
Many retirees would have had pensions cut in half because the PBGC doesn’t pay supplements that Delphi provided to retirees until they were eligible for Social Security payments.
The IUE has been negotiating with GM because it used to be the parent company of Delphi. The Treasury Department also was involved because it provided funding for GM to emerge from its own bankruptcy.
The deal with GM calls for retirees who are under 65 to pay these monthly amounts for health-care coverage: $95 for a single retiree; $140 for a retiree and spouse; and $180 a month for a family plan.
The plan would carry a deductible of $2,500 for a single person or $5,000 for a family. After that amount is reached, the plan would cover 80 percent of expenses for network care or 60 percent for non-network care. Out-of-pocket maximums, however, would be $3,500 for a single person or $7,000 for a family.
Vision and dental coverage would be lost after Dec. 31.
Retirees now pay about $26 a month for coverage and have much lower deductibles.
Clark said the IUE understands the deductibles are high, but it was the best deal the union could get from GM and the Treasury.
Also, he noted that retirees can opt out of the health-care plan and receive a cash payment. The payment would vary on the age of the retiree and whether a spouse is involved.
Clark said final amounts haven’t been set, but he estimated that a younger retiree with a spouse would receive about $15,000. A 64-year-old retiree who is single would receive about $1,000, he said.
As for retirees who are 65 and eligible for Medicare, the union would receive a $1 billion claim in the bankruptcy case of the “old GM.” It isn’t known how much money the union would receive from that claim, but that amount would be used to fund some health-care benefit, such as prescription drug coverage, Clark said.
shilling@vindy.com
- Requires free registration.
Comments
GOOD NEWS
This is intresting ! GM and the US treasury will pay their benfits. Well does that mean for example people who work at a plant and the plant goes under are the american people going to help them? Or bale them out ?I'm sorry Delphi Packard Electric didn't set money aside and promised their workers a pension. That's that Company fault not the American people. They should be made to take what the Pension Benefit Guaranty Corp pays. I hope the Judge sees the light in this. Other wise there be law suites from other groups of people claming they're owed pensions. Can't bale everyone out. This should teach people a lesson. You pay as you go ! Companies should do the same. Every three months, four times a year send their employees benfits to a administative company and have them put the money into it's department. If they don't? Don't work until they do ! I feel for the workers, but it's the Republican Company that screwed you. Not the American people.
We earned that pension with every hour we worked and it was mishandled by GM and then by Delphi. I am sorry too for that and if a lawsuit is what it takes to set big companies straight then go for it. Not asking for a bail out or a hand out! Just asking for what I earned. Yes we were sent letters telling us our retirement was funded and then one day it was all gone. Hope it never happens again to anyone.
true you might have earned that pension but you should get it from delphi not gm. when delphi spun-off from gm that was it now the delphi employees get to come back to gm and bump all the tier-two ppl thats a bunch of bs i am a member of the uaw and the iue workers should not over step tier-two uaw employees.
So some of you don't care to see that people who worked 30 plus years get their pensions, yet alot of you out there want people who never worked 30 days to be rewarded with the money the Delphi workers paid in taxes. I'd much rather bail out the contributors to society,than the non-contributors.
Well "teenie" here is how it went. When GM spun off Delphi I had 26 years with them. When I retired, GM offered to take over our pensions to help out Delphi. Delphi gave "my earned pension money" to GM and they blew it. So there you have it "teenie" a history lesson. Get it?
It's not Americas Job to bale out companies period. Unionguy, I feel for you. I'm a union Tradesmen. Would you like me to tell you how many contractors left the Northeast withou paying our Health Ins, Pension, Anniuty and Vacation ? Well theres been quite a few. This happens to all the crafts at some time or another. Does that entitle me to a bale out ? What's the difference I have Twenty-Five years invested ? Where were Union officals ? I know what we did. We walked until the contractor paid up period. It seems the carrot they held in front of you and co-workers was appealing. You can TRUST these lying republican companies !
UnionGuy how would you feel if you were hired by gm and the uaw told you you held senority over delphi because delphi no longer belong to gm and a year later your told all those from delphi can come in and over step you my spouse retired from gm and im currently working for gm but im looking at those who just were hired what im saying is i understand about your pension but the workers employed now had the chance to come back years ago they didnt so they should be the ones treated like new hires not traditional workers they should take the paycut and be under the tier-two ppl they came in after tier-two
teenie knows not what she talking about.I WAS HIRED BY GM 15 YEARS AGO. ....and never offerd to go to gm till july of 08 and did. IF YOU HAVE LESS THIN 15 YEARS WITH GM YOU SHOULD NOT SHOULD NOT BE WORKING BEFORE ME.