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Are GM retirees at risk?

By Stan Milam ( Contact )   April 24, 2009

The Washington Post and The New York Times report that a General Motors bankruptcy could mean serious financial problems for retirees. The Post reports that if GM pension plans are terminated, a possibility under restructuring following a declaration of bankruptcy, those plans would be at least $20 billion underfunded and the federal Pension Benefit Guaranty Corp. would insure only about $4 billion of that gap. The plans would have $100 billion in obligations and only $84 billion in assets.
What happens to the Rock County economy if it takes another big hit - first the plant closes and then a huge reduction in retiree benefits?

reader COMMENTS
whatever536
Apr 30, 2009 at 2:39 p.m.
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It is sad for all of the people that put their time in only to get screwed by corporate America.

gmretiree
Apr 30, 2009 at 9:03 a.m.
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I am a salaried GM retiree.
Jan 1 I lost my group health plan but was given $300/mo to purchase a plan for myself and wife.
Today GM wiped out my liftime investing in the GM stock savings program.
Where did we go wrong in a nation so rich in talented workers?

miltonman
Apr 29, 2009 at 8:18 a.m.
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If you think this would be devastating to GM retires just how devastating do you think this would be to the economy. I know a lot of people in Janesville would like to see the GM people take a hit. But this is something even they would not recover from. It will even effect their Children and their way of life. It would be interesting to know how many GM retires are in the Janesville area.

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