Newspaper article The Canadian Press

GM Canada Agrees to Pay $9 Million, Restore Retirement Benefits

Newspaper article The Canadian Press

GM Canada Agrees to Pay $9 Million, Restore Retirement Benefits

Article excerpt

GM Canada restores some retirement benefits

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TORONTO - General Motors of Canada Ltd. has agreed to pay $9 million and restore most retirement benefits to nearly 3,300 salaried and executive retirees.

The proposed settlement will settle a lawsuit launched on behalf of the retirees, who saw their health and life insurance benefits cut or eliminated by GM when the automaker began major restructuring in 2008 and 2009.

Louis Sokolov, one of two lawyers representing the class members, said GM will use a $9 million fund to reimburse retirees for costs incurred between 2008 and August 31 when the benefits were cut. He said the total value of GM restoring the benefits, based on actuarial estimates, is $135 million.

Most of the benefits will be restored beginning September 1.

Sokolov said in some cases, retirees who had worked for the automaker for more than four decades saw their life insurance benefits cut from $100,000 to $20,000.

"When you have a group of 3,300 people, you have 3,300 different stories but the overwhelming story we hear from class members was that the cuts had detrimentally affected their retirement security," he said Friday. …

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