AUTO INSURANCE ARTICLE

Retirees stand to lose with GM, Chrysler

By: AutoInsuranceGuy
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Retired U.S autoworkers stand to lose tens of billions of dollars in pension and healthcare benefits in a bankruptcy filing, government officials said.

The Pension Benefit Guaranty Corp., which insures pension plans, said General Motors Corp.'s pension would have a $20 billion shortfall if the plan was terminated in a bankruptcy court. The agency would cover $4 billion of the shortfall, The Washington Post reported Friday.

Chrysler LLC would have a gap of about $9 billion with $2 billion of the total insured, the PBGC said.

That would leave GM retirees with a plan valued at $84 billion and obligations of $100 billion. Chrysler's plan would have obligations of $28 billion and assets of $20 billion.

Also in jeopardy are retirees' health funds. GM owes $20 billion to its fund and Chrysler owes $10 billion, the Post said.





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