Chapter Highlight General Motors Retirees Chapter

Larry Hice, President, General Motors Retirees Chapter

Among the bullet points in the first GMRA message emailed to members of GM retirees’ clubs were:

• When decisions made by GM are going to impact our lives, retirees need to have the ability to get our concerns voiced with GM executives and, when necessary, with Congress and the news media.  
• GM has taken billions from our pension plan. It used $2.3 billion for buyouts for UAW members. Spent $600 million on salaried retirement incentives and another $2.3 billion for Delphi’s hourly pension plan. 
• Medicare-eligible salaried retirees and surviving spouses have lost their GM-sponsored medical, dental, vision, hearing aid, prescription drug, extended care and catastrophic coverage benefits. In lieu of health care salaried retirees and surviving spouses received a pension increase of $300 which doesn’t nearly replace the eliminated benefits. 

The Wall Street Journal – Jun 01, 2009: DETROIT – General Motors Corp. filed for Chapter 11 bankruptcy early Monday, marking the humbling of an American icon that once dominated the global car industry and setting up a high-stakes gamble for U.S. taxpayers.

That same day GMRA issues a news release. The first three paragraphs stated: 

       “As General Motors files for bankruptcy, the General Motors Retirees Association expects and insists on a legal and political process that will provide fair treatment for all GM retirees, both union and non-union.

       “We at GMRA look forward to a bankruptcy process that treats all stakeholders fairly,” said John Christie, GMRA President. “Whether in bankruptcy court or in the work of the U.S. Congress, all parties should remember that 122,000 salaried retirees and their surviving spouses are not part of the UAW agreement.

       “These retirees, who worked hard for decades and have done nothing wrong, deserve full and fair consideration as the courts work to create a new General Motors,” said Christie.

The Wall Street Journal – Jul 10, 2009: DETROIT – The new General Motors exited bankruptcy protection early Friday after its faster-than-expected stint in court, pledging to “get back to the business of building great cars and trucks” and better serving customers.

There was not a default on the salaried retirees’ pensions in the bankruptcy. However, they were not as fortunate with their health and live insurance benefits. GM terminated health care at age 65 but added $300 per month per salaried retiree or surviving spouse pensions. life insurance was reduced to $10,000 for retirees of record on 8/1/2009. As of 1/1/2014 life insurance was terminated for all other current and future salaried retirees. 

In June 2012 GM announced it would buy a group annuity contract from Prudential to cover the pension payments for salaried retirees and dependents. GM also said it would offer a lump-sum buyout option to 44,000 of those retirees.

Jim Shepard, GMRA President at that time, sent a letter to the GM CEO objecting to the annuity and the buyout because retirees would be deprived of the protections of the Employee Retirement Income Security Act and the Pension Benefit Guaranty Corp. 

The Detroit News reported on November 1, 2012, that GM spent $3.6 billion on lump sum payouts to about 13,200 eligible U.S. salaried retirees salaried retirees who left GM between Oct. 1, 1997, and Dec. 1, 2011. The next day GM closed a $25,1 billion Pension Risk Transfer (also known as De-risking) transaction with Prudential which would irrevocably guarantee the full payment of pension benefits to approximately 110,000 GM salaried pension plan participants and dependents. 

The next major announcement to GMRA members was a June 28, 2014, email from NRLN President Bill Kadereit. He wrote in the opening sentence: “Your General Motors Retirees Association (GMRA) board has decided to dissolve the GMRA by year end and donate its cash to charities.”

Bill noted, “Over 5,700 GMRA members continue to read the NRLN’s newsletters, emails, Action Alerts and thousands write to members of Congress and remain committed to protect what remains of your income and health care security.”

“With the demise of the GMRA, the NRLN is announcing an NRLN GENERAL MOTORS RETIREES CHAPTER (GMRC) to be effective immediately,” Bill stated. “I need all of you to rally around the NRLN and support the GMRC by attending a kickoff breakfast meeting in Troy, Michigan on September 18th at the San Marino Club. Mark your calendar for that date now and I’ll provide you details about this exciting next step by email and mail in the next few weeks.”   

The rest of Bill’s message pointed out why the NRLN is relevant to GM retirees now that the GMRA is winding down. He cited the NRLN’s work to protect Social Security, Medicare and its lobbying efforts for out-of-pocket limits for those on Medicare.

Soon after the announcement, Bill received help from GM retiree Darla Freeman to provide names of GM retirees he could discuss becoming GMRA leaders. That is when I volunteered to become President of the new GMRA. Darla served as Vice President – Communications for several years.

This summer marked the 10th Anniversary of the GMRA.

Invitations to the September 18 kickoff breakfast were mailed on August 8. to 2,363 General Motors retirees who lived in a 75-mile radius of Troy, Michigan and emailed on August 12 to the 5,700 GM retirees in the NRLN database. 

The room was packed. Attendees heard presentations from Bill about the NRLN, talks by leaders of the Chrysler and DTE Energy retiree organizations about their actions, and two guest speakers who made presentations about Long-Term Care and the Area Agency on Aging.

As I look back on the last 10 years it is hard to believe how fast the years have gone passed. I hope you appreciate being a GMRC member and value the work the NRLN is doing on behalf of America’s retirees.