Part of the reason that General Motors survived its recent bout with bankruptcy is that it greatly reduced the amount of benefits it was paying to its retired workers. Now, more than 100 former GM executives are suing because they feel the automaker owes them dough.
General Motors has a plan administrator that examines all the claims made by the retirees. It states that all claims were reviewed and rejected in accordance with the requirements that the automaker needed to navigate through serious debt obligations and Chapter 11 bankruptcy.
The retired executives disagree.
Brian Koncius, a lawyer for the former GM employees, stated that his clients believe GM is incorrectly calculating retirement benefits, and that General Motors is cutting costs the wrong way. Rather than reducing the benefit by 2/3 of the amount over $100,000, GM is simply lopping off 2/3 of the entire executive benefit. That adds up to a huge difference in benefit payouts.