Three judges from the Sixth Circuit Court of Appeals in Cincinnati have ruled that 100 retired General Motors executives will have to continue with their reduced pensions, based on conditions outlined by the U.S. Treasury from the 2009 bankruptcy. GM was required to cut executive pensions that exceeded $100,000 a year by two thirds.
According to the Detroit News report, the retired executives claim that “GM misquoted terms of its executive retirement plan and shouldn’t have included benefits from the separate salaried retirement plan when determining if they were subject to the reduction.” Naturally, a lot of former executives feel like they’re being screwed over. For example, Rick Wagoner, former GM CEO, saw his pension drop from $20 million to *just* $8.5 million.
Overall, the pension cuts have saved the automaker around $221 million annually, while overall pension and health care cuts add up to an astounding $4.6 billion in savings.