GM Retiree Health Benefits Reduction

With Warning, G.M. Takes Wide Cost Cuts By BILL VLASIC Published: July 16, 2008 While G.M. has been methodically cutting jobs since 2006, the decision to eliminate health care benefits for salaried retirees over the age of 65 was unexpected. The generous health plans for retirees has long been considered a pillar of the benefit system at G.M. The company pledged to increase pensions to offset the loss of coverage. Still, retirees interviewed Tuesday said that they were blindsided by the move. One retiree, William Parker of Towson, Md., said he was recently prescribed a new cancer drug that normally costs $2,700 a month, but only $50 under his G.M. plan. “G.M. was good to me and I hate to be bitter,” said Mr. Parker, 74, who retired in 1987 after 28 years with G.M. “But I don’t know what the hell I’m going to do. I’m fighting for my life here.” Related Articles: Retiree Benefits Take Another Hit - Wall Street Journal GM's Plan to End Medical Coverage For Many 65 and Over is a sobering signal to the rest of the U.S. work force: Even those who are in or near retirement shouldn't count on keeping the company coverage they have built up.