General Motors Canada has agreed to restore the post-retirement benefits of 3,300 salaried and executive former employees to the same levels they were at before GM’s 2009 financial crisis, according to The Globe and Mail.
The cost of restoring the pension fund will be about $9 million. The agreement will settle a lawsuit launched on behalf of pensioners looking to restore their post-retirement benefits that were slashed heavily when GM entered bankruptcy. A Superior Court judge ruled last year that GM did not have the authority to reduce healthcare and other benefits after the employees had retired. The settlement does not cover GM’s hourly retirees, who reached an agreement with the company in 2011 over the same matter.
The $9 million will be put into a fund which will be used to compensate retirees for losses between when the benefits were cut and when the settlement is reached. Employees who retired between 1995 and 2011 were affected by the pension cuts. The deal will be put in front of a judge on August 7 for approval, according to the Globe and Mail.