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.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 12 Comments
      brenden
      • 3 Years Ago
      anyone who directly feels the effects of cost-cutting is going to scream that the company is "cutting costs the wrong way" ...it's gotta happen somewhere...
      BG
      • 3 Years Ago
      Gosh, that's tough that the executives might have to suffer. What did they do for GM while they were in office?
      • 3 Years Ago
      [blocked]
      BMW ROCKS!
      • 3 Years Ago
      should've gone to college if u wanted to work 40 hrs/week, get paid for over time, and keep the second vacation home above the Bridge... hey wait a sec... i can just sue!
        Dave
        • 3 Years Ago
        @BMW ROCKS!
        Since these are executives, I'm guessing they went to college. You might try it, too, if you graduate from high school.
      Norville
      • 3 Years Ago
      This is one of many reasons the feds should have just let them fail. They are their own worst enemy and don't deserve to survive.
      Mondrell
      • 3 Years Ago
      Surely none of these guys are among those who helped pave the way for GM crashing and burning. . .
      kevsflanagan
      • 3 Years Ago
      Maybe its just me but if I was them I'd be happy to be getting anything outa GM right now. That and being a Exec I'm pretty sure they have a hefty sum saved up to last them the rest of their life. If they don't then I believe they need to look over their retirement plans.
      Dhunt
      • 3 Years Ago
      Cut, cut, cut! Hey! Where's my benefits?!
      Troy Crabtree
      • 9 Months Ago
      I have been a General Motors Employee that moved from Indiana to Kansas to retain my job. I was feeling ill and went to my family Doctor and he refered me to a Liver Doctor who said I needed a Transplant ! I was devastated, I couldn't believe it. I had spent my life in a factory trying to better myself and my family. I started out as a production worker, entered a apprentice Machine Repairman program, as a Machine Repairman I entered into a Machinist program where I became a Tool and Die maker. I worked for Guide , a division of G.M.. As Indiana struggled with Plant closings , I became a victim of Corporate Greed that stepped on American workers and welcomed China into the FAIR trade world. Now I sit my feet swollen , my Liver at an end. General Motors has me as Retired with NO benefits. They are KILLING me with the United State's President Obamas blessing. Can Someone Help Me? Troy S. Crabtree, 8001 Blueridge Blvd., Raytown, Mo. 64138
      q3a7vodk4
      • 3 Years Ago
      What's wrong with you people. If I worked my rear end off for a company and then they turn around after I retire and just refuse to pay me what they owe me I would be pretty angry about it. This is why I will always take the lump sum, thank you very much you heartless corporate psychopaths.
        simianspeedster
        • 3 Years Ago
        @q3a7vodk4
        Do you even know what bankruptcy means? The company that promised you a retirement package in your hypotentical does not exist any more for all practical purposes. You know the shareholders (i.e. owners) got wiped out, right?