More than 100 retired GM executives have filed a federal lawsuit with their former company, saying they’ve been given the short stick with their retirement benefits. In the lawsuit, the retirees claim that The General is cutting as much as two-thirds of their pension benefits in excess of $100,000 under two different retirement plans. The retirees were under the impression that GM would only cut some of their benefits for one plan.
“These people understand General Motors’ financial condition and are willing to accept cuts under one plan, but not both. This has had a huge impact on these people’s lives,” said Kathleen Bogas, the lawyer handling the retirees.
GM spokesman Jim Cain said stakeholders; including retirees had to make sacrifices to help GM become successful once more.
“Some months ago, these executives approached the company with a claim regarding their benefits, which the company reviewed and gave every consideration to. But ultimately, it was denied and we believe that decision is going to stand,” Cain said.
A court date is pending.
Source: Detroit Free Press