It has been just over two weeks since GM filed for bankruptcy. 
Last week we received the first update from GM on how salaried retiree
benefits would be affected. This week most of us received a letter from
the Corporation explaining in a little more detail how our benefits
might be impacted by the bankruptcy and the 363 sale of assets.



At this time, GM maintains that our pension benefits will remain
unchanged, including the $300 benefit for those over 65 to help with
the additional costs resulting from the cancellation of health care
benefits for that group.  Unfortunately, the news for those less than
65 years of age (currently about 20% of salaried retirees) was not as
good.  Dental, Vision, and Extended Care Coverage would be eliminated
under GM’s proposal, and the under-65 group has been informed that
there would be a “substantial” increase in benefit costs to retirees
starting in 2010.  Also, the revised cap on salaried medical
contributions by New GM likely would cause ever-increasing retiree
costs for remaining health coverage in future years.  In addition, life
insurance under GM’s plan would be reduced to $10,000 for each
salaried retiree as of the date GM exits bankruptcy

Next week, on Thursday, June 25th, members of the GMRA leadership
team will be in New York City, along with our attorney, to address the
GM bankruptcy judge on behalf of GM salaried retirees.  We will be
asking that a Section #1114 benefits committee be established to ensure
that the sacrifices being made are fair and equitable among all
parties involved.  Once established, GMRA would work within the
committee process to gain commitments from New GM in areas of interest
to GM salaried retirees as determined through our conversations with
you, our members.