Chevrolet Engineering Retirees Club
 | |  | |  | |  | |  | |  | |  | |  |
Thursday, April 14, 2011
To All General Motors Retirees:
General Motors Customer Care and Aftersales (CCA) recently announced the
launch of Certified Service at GM Dealerships for all of our vehicle brands. This is
more than just a name change; it's a commitment from the highest levels of GM to
provide superior treatment, convenience and value during every service visit.
Certified Service will redefine your service experience with:
Great customer treatment, convenience and value,
Respecting the customer's time, and ...
Creating a truly exceptional service experience
With this in mind, we would like to invite you to have your vehicle's future service
done at your local Chevrolet, Buick, GMC or Cadillac dealer and experience this
change first hand. As an incentive to do this, we are pleased to announce the 2011
Certified Service Employee Discount Program. As of March 14, 2011, CCA will
offer all U.S. GM Retired employees, including immediate family members, a
discount toward any service or parts purchase at participating US dealerships.
When you visit your local dealership for a customer-pay transaction of $25.00 or
more in the body shop or parts department you are eligible to receive a discount up
to $20.00 toward your purchase. This discount is fully stackable with current
everyday value pricing and all rebate programs as well.
Retirees will have up to three discount certificates available to use between March
14 and December 31, 2011. You may retrieve the discount certificates and find
additional information on the program at www.gmfamilyfirst.com.
As a part of this program, many dealerships will now offer Saturday hours as an
added convenience for you. A participating dealership list can also be found on the
GM Family First website.
Please note: This discount was announced on GMRetiree.com on March 14, but it's
been brought to our attention that many retirees did not see the announcement on
the site, and therefore we are sending this email, so that you can take advantage of
these discounts.
GM appreciates the contributions you made to our company as an employee. As a
retiree, you are still very important to our future success. GM's U.S. retiree
website, GMRetiree.com, is intended to keep you up-to-date with what is
happening at GM, and to provide you with easy access to your personal benefit
information and services you are entitled to as a retiree.
As a result of your registration on GMRetiree.com, you will periodically receive this
email. We will email you when we post information on GMRetiree.com that we feel
is important for you to see, such as new benefit information, an important legislative
issue, a corporate announcement, a vehicle discount incentive, or if we'd like to
invite you to a GM event occurring in your area.
Please visit GMRetiree.com often as the site is continuously updated with news and
events.
Lastly, please encourage your fellow retirees to register on the site by forwarding
this email to them.
© 2011 GENERAL MOTORS COMPANY
This email was sent by: GM Retiree Communications
300 Renaissance Center Drive Detroit, MI 48243 USA
To All General Motors Retirees:
General Motors Customer Care and Aftersales (CCA) recently announced the
launch of Certified Service at GM Dealerships for all of our vehicle brands. This is
more than just a name change; it's a commitment from the highest levels of GM to
provide superior treatment, convenience and value during every service visit.
Certified Service will redefine your service experience with:
Great customer treatment, convenience and value,
Respecting the customer's time, and ...
Creating a truly exceptional service experience
With this in mind, we would like to invite you to have your vehicle's future service
done at your local Chevrolet, Buick, GMC or Cadillac dealer and experience this
change first hand. As an incentive to do this, we are pleased to announce the 2011
Certified Service Employee Discount Program. As of March 14, 2011, CCA will
offer all U.S. GM Retired employees, including immediate family members, a
discount toward any service or parts purchase at participating US dealerships.
When you visit your local dealership for a customer-pay transaction of $25.00 or
more in the body shop or parts department you are eligible to receive a discount up
to $20.00 toward your purchase. This discount is fully stackable with current
everyday value pricing and all rebate programs as well.
Retirees will have up to three discount certificates available to use between March
14 and December 31, 2011. You may retrieve the discount certificates and find
additional information on the program at www.gmfamilyfirst.com.
As a part of this program, many dealerships will now offer Saturday hours as an
added convenience for you. A participating dealership list can also be found on the
GM Family First website.
Please note: This discount was announced on GMRetiree.com on March 14, but it's
been brought to our attention that many retirees did not see the announcement on
the site, and therefore we are sending this email, so that you can take advantage of
these discounts.
GM appreciates the contributions you made to our company as an employee. As a
retiree, you are still very important to our future success. GM's U.S. retiree
website, GMRetiree.com, is intended to keep you up-to-date with what is
happening at GM, and to provide you with easy access to your personal benefit
information and services you are entitled to as a retiree.
As a result of your registration on GMRetiree.com, you will periodically receive this
email. We will email you when we post information on GMRetiree.com that we feel
is important for you to see, such as new benefit information, an important legislative
issue, a corporate announcement, a vehicle discount incentive, or if we'd like to
invite you to a GM event occurring in your area.
Please visit GMRetiree.com often as the site is continuously updated with news and
events.
Lastly, please encourage your fellow retirees to register on the site by forwarding
this email to them.
© 2011 GENERAL MOTORS COMPANY
This email was sent by: GM Retiree Communications
300 Renaissance Center Drive Detroit, MI 48243 USA
The following was From Vince Bandursky via Don Robins: June 1, 2012
As President of the GM Detroit Executive Retirees Club, I was extended an
invitation to join the GM Retirees conference call today at 2:45 pm. I will try to
recap the major points during the conference call, as there is some information on
the GMRetiree.com web-site, as well as a GM press release.
The highlights I have read and heard mentioned on the conference call are noted
below, and represents my understanding or interpretation of the comments and
should be taken only as guidance. Sufficient information will be provided by GM as
the process evolves.. I apologize ahead of time if my comments mis-lead anyone.
If any of you were also on the call and I have listed something incorrectly, please
call it to my attention.
Cindy Brinkley (VP-HR) introduced the subject and then turned it over to the retiree
representatives. As a matter of comment, a press release yesterday by Ford
indicated they will be offering a similar program to their retirees. It is expected that
the retirement plan action will result in a $26 Billion reduction of GM's salaried
pension Obligation.
The following statements by Cindy Brinkley are taken off www.GM Retiree.com:
A Message from Cindy Brinkley:
"I’d like to provide some perspective on the changes GM announced regarding the
Salaried Retirement Program, and why the GM leadership team made these
decisions.
Over the past several months, we have carefully considered a number of options
that would enable us to meet two very important commitments … maintaining the
value of your retirement benefits and continuing to strengthen GM’s balance sheet.
In terms of your retirement benefits, I want to be very clear that these changes
maintain the value of your pension benefits and provide many retirees with new
choices. Again, the value of your retirement benefit is not changing.
The changes to the SRP also will significantly reduce our ongoing pension liabilities
and strengthen GM’s balance sheet.Steps like this are as important to our future as
designing, building and selling the world’s best vehicles. "
Listed below is my recap:
1. Most GM salaried retirees who retired on or after 10-1-1997 and before 12-1-
11, are being provided a lump sum payout offer of their Salaried Retired Program
(SRP) benefit. Approx. 42,000 salaried retirees affected out of a total of 118,000
salaried (36%). (The changes will NOT affect approx. 400,000 UAW Retirees and
surviving spouses). They may:
a. Take their pension benefit as a lump sum payment ( payable in Sept., 2012, I
believe, but varies by individual);
b. Or continue to receive current monthly pension payment (until January, 2013-
see further comments later);
c. or, Choose a new form of monthly pension benefit based on the lump sum
valuation.
Retirees NOT offered a lump sum will continue to receive their current monthly
pension benefit until approx. January, 2013, when they and the remainder of
retirees (and surviving spouses) who do not take a lump sum distribution will be
provided sufficient funding to purchase an annuity contract from the Prudential
Insurance Company to pay and administer all pension obligations for monthly
benefits. GM stated that in all cases, the value of salaried retirement benefits will
not change At this point, GM will have no further pension obligations to the retirees.
Salaried retirees eligible for the lump sum payout will be notified individually by a
personal letter with personalized financial details for their specific situation, and
they will have until July 20, 2012 to make a decision on their payout options. The
election kit will be mailed today (6-1-12).
GM will be offering a series of information meetings for those affected between
June 12 thru June 22 at various locations around the country. Invitations will be
sent out Monday (6-4-12) only to those who have a decision to make. However,
there will be no new information shared in these meetings, but they are being
offered to bring clarity to the information provided.
GM will also provide tools for employees to use for their own analysis, some call
centers (Fidelity, Ayco, etc.) to answer questions, and a specific web-site to
provide additional information, as well as Frequently Asked Questions (FAQ).
Retirees should also go to GMRetiree,com for more information.
GM will establish a new plan for active salaried employees, and those who retired
after 12-1-11, with the same provisions as the current plan. GM will terminate the
current salaried pension plan.
The $300 monthly pension benefit added when the health care was reduced will be
included in all financial calculations.
For those who previously elected to take a reduced pension so the spouse would
receive a pension upon the retiree's death, Prudentiol Insurance will be responsible
for lifetime payment to the spouse upon the retiree's death.
The Prudential Annuity is a GROUP Annuity. and the annuity benefit will pay the
same as the current benefit for the retiree's lifetime.
For those who currently have monthly deductions for health care and/or life
insurance will be advised at a later date on how to pay the premiums.
The formal GM press release is shown below and can be viewed on www.
GMRetiree.com.
GM Announces U.S. Salaried Pension Plan Actions
Offers lump-sums to many retirees; Prudential to assume monthly benefits
· Expected $26 billion reduction in U.S. pension obligation
· 118,000 salaried retirees overall impacted; 42,000 offered lump-sum payment
· No change to active employee benefits
DETROIT – General Motors Co. today announced that it will provide select U.S.
salaried retirees a lump-sum payment offer and other retirees with a continued
monthly pension payment securely administered and paid by The Prudential
Insurance Company of America, a Prudential Financial, Inc. company.
The retirement plan actions will result in an expected $26 billion reduction of GM's
U.S. salaried pension obligation.
Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to
receive a voluntary single lump-sum payment option. GM plans to purchase a group
annuity contract from Prudential under which Prudential will pay and administer
future benefit payments to most of the remaining U.S. salaried retirees. The
transactions are expected to be completed by the end of 2012, following
completion of regulatory review. Prudential would then assume responsibility for the
benefits covered by the agreement and begin making the benefit payments in
January 2013.
"We appreciate the contributions our retirees have made to the company and we
have taken great care in ensuring the security of their retirement benefits," said
Cindy Brinkley, GM vice president of global human resources. "Many of our retirees
will now have more flexibility to manage their retirement funds and we are confident
that Prudential will provide outstanding service to those receiving a monthly
payment."
Approximately 118,000 U.S. salaried retirees are impacted by these changes in
different ways, depending on retirement date and eligibility. Salaried retirees
eligible for the lump-sum payment will have until July 20, 2012 to make a decision
on their payment options. The eligibility and pension options for the majority of
retirees are:
Eligibility Actions/Options
Retired from GM on or after Oct. 1, 1997 and before Dec. 1, 2011. Three choices:
1. One-time, single lump-sum payment.
2. Continue with current monthly benefit, payable by Prudential.
3. New form of monthly benefit (based on marital status) – single life annuity or joint
and survivor monthly benefit, payable by Prudential.
Retired from GM before Oct. 1, 1997. Continue with current monthly benefit,
payable by Prudential.
Most active salaried employees and retirees who started receiving their pension
benefits on or after Dec. 1, 2011. Moved into new GM pension plan with same
benefits. Lump-sum payment or monthly pension benefit available at retirement,
payable by GM.
"We are delighted to be working with General Motors to help the company fulfill its
promise of guaranteed lifetime income for retirees in the salaried retirement
program," said Christine Marcks, president of Prudential Retirement, a business
unit of Prudential Financial, Inc. "We have a strong track record in this area, having
worked with companies and organizations since 1928 to provide guaranteed
pension benefits for millions of retirees."
GM's anticipated cash contribution to its U.S. salaried pension plans to effect these
actions will be in the range of $3.5 to $4.5 billion to help fund the purchase of the
group annuity contract and to improve the funded status of the pension plan for
active salaried employees. The final amount will be determined at the closing of the
transactions.
GM expects to take net special charges in the range of $2.5 to $3.5 billion in the
second half of 2012 and the ongoing annual impact to earnings will be
approximately $200 million unfavorable due to a decrease in pension income.
"These actions represent a major step toward our objective of de-risking our
pension plans and will further strengthen our balance sheet and give us more
financial flexibility going forward," said Dan Ammann, senior vice president and
CFO.
These pension changes do not affect GM salaried retirees' eligibility for post-
retirement health care, life insurance and a vehicle discount.
As a result of the changes to the pension plan for salaried retirees, GM will
establish a new plan for active salaried employees with the same provisions as the
current plan. GM will terminate the current salaried pension plan. There is no
impact on hourly retirees.
GM's retiree website, www.gmretiree.com, will include additional information on the
pension changes to further assist salaried retirees.
As President of the GM Detroit Executive Retirees Club, I was extended an
invitation to join the GM Retirees conference call today at 2:45 pm. I will try to
recap the major points during the conference call, as there is some information on
the GMRetiree.com web-site, as well as a GM press release.
The highlights I have read and heard mentioned on the conference call are noted
below, and represents my understanding or interpretation of the comments and
should be taken only as guidance. Sufficient information will be provided by GM as
the process evolves.. I apologize ahead of time if my comments mis-lead anyone.
If any of you were also on the call and I have listed something incorrectly, please
call it to my attention.
Cindy Brinkley (VP-HR) introduced the subject and then turned it over to the retiree
representatives. As a matter of comment, a press release yesterday by Ford
indicated they will be offering a similar program to their retirees. It is expected that
the retirement plan action will result in a $26 Billion reduction of GM's salaried
pension Obligation.
The following statements by Cindy Brinkley are taken off www.GM Retiree.com:
A Message from Cindy Brinkley:
"I’d like to provide some perspective on the changes GM announced regarding the
Salaried Retirement Program, and why the GM leadership team made these
decisions.
Over the past several months, we have carefully considered a number of options
that would enable us to meet two very important commitments … maintaining the
value of your retirement benefits and continuing to strengthen GM’s balance sheet.
In terms of your retirement benefits, I want to be very clear that these changes
maintain the value of your pension benefits and provide many retirees with new
choices. Again, the value of your retirement benefit is not changing.
The changes to the SRP also will significantly reduce our ongoing pension liabilities
and strengthen GM’s balance sheet.Steps like this are as important to our future as
designing, building and selling the world’s best vehicles. "
Listed below is my recap:
1. Most GM salaried retirees who retired on or after 10-1-1997 and before 12-1-
11, are being provided a lump sum payout offer of their Salaried Retired Program
(SRP) benefit. Approx. 42,000 salaried retirees affected out of a total of 118,000
salaried (36%). (The changes will NOT affect approx. 400,000 UAW Retirees and
surviving spouses). They may:
a. Take their pension benefit as a lump sum payment ( payable in Sept., 2012, I
believe, but varies by individual);
b. Or continue to receive current monthly pension payment (until January, 2013-
see further comments later);
c. or, Choose a new form of monthly pension benefit based on the lump sum
valuation.
Retirees NOT offered a lump sum will continue to receive their current monthly
pension benefit until approx. January, 2013, when they and the remainder of
retirees (and surviving spouses) who do not take a lump sum distribution will be
provided sufficient funding to purchase an annuity contract from the Prudential
Insurance Company to pay and administer all pension obligations for monthly
benefits. GM stated that in all cases, the value of salaried retirement benefits will
not change At this point, GM will have no further pension obligations to the retirees.
Salaried retirees eligible for the lump sum payout will be notified individually by a
personal letter with personalized financial details for their specific situation, and
they will have until July 20, 2012 to make a decision on their payout options. The
election kit will be mailed today (6-1-12).
GM will be offering a series of information meetings for those affected between
June 12 thru June 22 at various locations around the country. Invitations will be
sent out Monday (6-4-12) only to those who have a decision to make. However,
there will be no new information shared in these meetings, but they are being
offered to bring clarity to the information provided.
GM will also provide tools for employees to use for their own analysis, some call
centers (Fidelity, Ayco, etc.) to answer questions, and a specific web-site to
provide additional information, as well as Frequently Asked Questions (FAQ).
Retirees should also go to GMRetiree,com for more information.
GM will establish a new plan for active salaried employees, and those who retired
after 12-1-11, with the same provisions as the current plan. GM will terminate the
current salaried pension plan.
The $300 monthly pension benefit added when the health care was reduced will be
included in all financial calculations.
For those who previously elected to take a reduced pension so the spouse would
receive a pension upon the retiree's death, Prudentiol Insurance will be responsible
for lifetime payment to the spouse upon the retiree's death.
The Prudential Annuity is a GROUP Annuity. and the annuity benefit will pay the
same as the current benefit for the retiree's lifetime.
For those who currently have monthly deductions for health care and/or life
insurance will be advised at a later date on how to pay the premiums.
The formal GM press release is shown below and can be viewed on www.
GMRetiree.com.
GM Announces U.S. Salaried Pension Plan Actions
Offers lump-sums to many retirees; Prudential to assume monthly benefits
· Expected $26 billion reduction in U.S. pension obligation
· 118,000 salaried retirees overall impacted; 42,000 offered lump-sum payment
· No change to active employee benefits
DETROIT – General Motors Co. today announced that it will provide select U.S.
salaried retirees a lump-sum payment offer and other retirees with a continued
monthly pension payment securely administered and paid by The Prudential
Insurance Company of America, a Prudential Financial, Inc. company.
The retirement plan actions will result in an expected $26 billion reduction of GM's
U.S. salaried pension obligation.
Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to
receive a voluntary single lump-sum payment option. GM plans to purchase a group
annuity contract from Prudential under which Prudential will pay and administer
future benefit payments to most of the remaining U.S. salaried retirees. The
transactions are expected to be completed by the end of 2012, following
completion of regulatory review. Prudential would then assume responsibility for the
benefits covered by the agreement and begin making the benefit payments in
January 2013.
"We appreciate the contributions our retirees have made to the company and we
have taken great care in ensuring the security of their retirement benefits," said
Cindy Brinkley, GM vice president of global human resources. "Many of our retirees
will now have more flexibility to manage their retirement funds and we are confident
that Prudential will provide outstanding service to those receiving a monthly
payment."
Approximately 118,000 U.S. salaried retirees are impacted by these changes in
different ways, depending on retirement date and eligibility. Salaried retirees
eligible for the lump-sum payment will have until July 20, 2012 to make a decision
on their payment options. The eligibility and pension options for the majority of
retirees are:
Eligibility Actions/Options
Retired from GM on or after Oct. 1, 1997 and before Dec. 1, 2011. Three choices:
1. One-time, single lump-sum payment.
2. Continue with current monthly benefit, payable by Prudential.
3. New form of monthly benefit (based on marital status) – single life annuity or joint
and survivor monthly benefit, payable by Prudential.
Retired from GM before Oct. 1, 1997. Continue with current monthly benefit,
payable by Prudential.
Most active salaried employees and retirees who started receiving their pension
benefits on or after Dec. 1, 2011. Moved into new GM pension plan with same
benefits. Lump-sum payment or monthly pension benefit available at retirement,
payable by GM.
"We are delighted to be working with General Motors to help the company fulfill its
promise of guaranteed lifetime income for retirees in the salaried retirement
program," said Christine Marcks, president of Prudential Retirement, a business
unit of Prudential Financial, Inc. "We have a strong track record in this area, having
worked with companies and organizations since 1928 to provide guaranteed
pension benefits for millions of retirees."
GM's anticipated cash contribution to its U.S. salaried pension plans to effect these
actions will be in the range of $3.5 to $4.5 billion to help fund the purchase of the
group annuity contract and to improve the funded status of the pension plan for
active salaried employees. The final amount will be determined at the closing of the
transactions.
GM expects to take net special charges in the range of $2.5 to $3.5 billion in the
second half of 2012 and the ongoing annual impact to earnings will be
approximately $200 million unfavorable due to a decrease in pension income.
"These actions represent a major step toward our objective of de-risking our
pension plans and will further strengthen our balance sheet and give us more
financial flexibility going forward," said Dan Ammann, senior vice president and
CFO.
These pension changes do not affect GM salaried retirees' eligibility for post-
retirement health care, life insurance and a vehicle discount.
As a result of the changes to the pension plan for salaried retirees, GM will
establish a new plan for active salaried employees with the same provisions as the
current plan. GM will terminate the current salaried pension plan. There is no
impact on hourly retirees.
GM's retiree website, www.gmretiree.com, will include additional information on the
pension changes to further assist salaried retirees.
| Information on Changes to Salaried Retirement Program June 1, 2012 |