If General Motors goes into "orderly bankruptcy" will Salaried Retiree's loose our pension?

Monday, February 28, 2011

My husband & I are in our 70's and both retired salary workers from General Motors. Our pension is fixed. It is the same amount since we retired in 1994. As of January 1st, we are loosing all of our health care, because General motors can no longer afford it. When we retired we thought we had health care for life. We also are loosing an extended care policy that "We" have paid the premium on for 14 years, along with the health, dental and vision coverage. Our pension and social security are all we have.
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There is a pension protection agency in the U.S. and I am pretty certain GM paid into that protection. What will happen is the government will take over your pension plan. The problem is that the government is not very efficient with spending other people's money. Historically, the amount paid out vs what you currently receive will be in the neighborhood of 70%-80%. In this case, because of the economy, you'll probably see a return of 60%-70% of what you recieve today. So expect a reduction in pension payments by about 20% to 40%.
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