100 retired executives from General Motors will soldier on with smaller pensions after a trio of judges in the Sixth Circuit Court of Appeals in Cincinnati, ruled in favor of the automaker. The dispute stemmed from the requirements made by the Obama administration as part of GM's bankruptcy and restructuring, according to a report from The Detroit News.

The gist of the suit is that the former execs thought their pensions were being calculated one way for the purpose of the cuts, while the automaker was actually counting a different way, with GM factoring in a salaried retirement plan into the executive retirement plan. The judges in the appeals case sided with a 2011 ruling by US District Court Judge George Caram Steeh.

One of the conditions for the bailout was that GM needed to trim all executive pensions worth over $100,000 per year by up to two-thirds. Not surprisingly, some execs weren't pleased about this. As The Detroit News notes, former CEO Rick Wagoner saw his pension fall from $20 million to $8.5 million.

According to The News, trimming the pensions of the top executives alone saved $221 million per year, while overall pension and health care cuts added up to $4.6 billion in savings.


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  • 117 Comments
      Sylvie
      • 1 Year Ago
      What's good for General Motors, is good for the U.S.A. Now about those Congressional perks...
      rlj396
      • 1 Year Ago
      I agree, ole' Rick W will probably have a tuff time making ends meet with only 8.5M or $23,287.67 per day to play with instead of 20M. I'll bet the retired engineers, accountants and all other retired GM folks who worked their a-s off for all those years at GM, could probably make it on that and have a little left over to buy some fish bait and maybe a boat to fish out of! Give me a break, PLEASE!!
      nkowalak
      • 1 Year Ago
      I think they will be able to manage with their lower retirement checks! Good move Government!
      R.t Voll
      • 1 Year Ago
      Their still getting millions and their complaining? How can anyone complain about 8.5 million?! I would **** myself if I had that much money.
      Tom Gwiazdon
      • 1 Year Ago
      They are the people who got GM in trouble in the first place with their "LEADERSHIP" !!! They should be paying the US, the taxpayers for their blunders!!!!!!!!!!!!
      • 1 Year Ago
      [blocked]
        4gasem
        • 1 Year Ago
        NOT taking their side here, but it's all relative. When you make 50 million a year, you live like it. Just like someone who makes 30,000 a year lives like it. That being said, i could live on 8.5 million pretty comfortably...
          AcidTonic
          • 1 Year Ago
          @4gasem
          Well I guess we all have to lower our quality of life then...... So you can still keep "living it up" beyond spending more than $500,000 a year. You'd think at some point they would just start saving the remainder.... But here it's clearly make-more spend-more until infinity. How sad for those who were taught you gotta work hard to get stuff.....
      cwnelson1
      • 1 Year Ago
      How? How can a natural man live on 8.5 million per year?
        • 1 Year Ago
        @cwnelson1
        [blocked]
        microbe42
        • 1 Year Ago
        @cwnelson1
        So that's what happened to Detroit ? Who'd a thunk it ?
      whofan
      • 1 Year Ago
      GM was already a mess before Rick Wagoner stepped in. 8.5 million don`t feel sorry for him over pension. His legacy yes I do feel sorry for him over that. Roger Smith did damage to GM like an atomic bomb.
        • 1 Year Ago
        @whofan
        [blocked]
        Mondrell
        • 1 Year Ago
        @whofan
        \"GM was already a mess before Rick Wagoner stepped in.\" Absolutely. I won\'t go so far as to assert that he was ousted from a post he was perfect for, but I\'m convinced that Rick Wagoner recognized that GM couldn\'t continue to do business as usual, and made some overtures that were ingrained into the foundation of New GM. Specifically, GM really began to acknowledge the inroads made by foreign competition and began meaningfully leveraging their international resources. I\'m not in a position to say whether or not he did enough, but enough evidence of GM\'s insular and change-resistant culture has been published that I think that even if he was a game-changing CEO, he\'d have had his hands full with obstinance from all sides cultivated from decades of no one else stepping up to the plate against its unsustainable business model. I expect a lot of people who seek the power of a firm\'s leadership, but I also recognize that when key personnel are convinced that they\'re on a unicorn ranch instead of a path to failure, it\'s almost impossible to make the kind of meaningful changes a company like GM really needed.
      alloftis
      • 1 Year Ago
      Welcome to the real world. My retiree employer made our retiree health insurance a voucher program of only $600 a yr, then I get notice the other day that they are no longer going to pay for our retiree life insurance , which was not much anyway. The same needs to be done with Congress and Senate, then they may understand the things that are happening to most of us. No more golden parachutes or hefty retirement packages for all.
      Georgia A McD
      • 1 Year Ago
      How can anyone live on only 8 million a year! He should have gone into teaching and try to live on my retirement. I'm not complaining about mine....................his? yes
      IBruzEZ
      • 1 Year Ago
      Poor babies.!! I would be ashamed to admit I had a 20 million retirement when the company went bankrupt and so many people put out of work, lost homes, everything.!! It is this kind of greed that is putting so many companies out of business, paying for the few "upper eschilon" folks and CEO's to get multiple millions, bonuses for firing people, etc. Congress, president, should be in the group that get cuts and more cuts.!! Shouldn't be able to vote their own salaries or benefits.
      wboozer@mail.com
      • 1 Year Ago
      Good grief, that's only $23,287.67 a day!
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