Attrition Retirement Info

 

   30 or more years of service, 85points or at least 60 years of age and 10 years of service all receive $45,000 for production members and $62,500 for trades members. The eligibility date for normal departure is July 1st, 2008. We argued for all of 2008 to be the eligibility period to attain these options and we were successful. We got great support from the International UAW because they understood the tremendous amount of people that become eligible now that the date has been extended. Retirees must be gone by July 2008 unless they are not eligible until later in 2008. If a team member attains eligibility for any of the programs listed above later than July 1st but before January 1st 2009, then the the team member must retire the month the month following the attainment of the requirement.

    For instance if a team member earns their 30 years of service, 85 points or 60 and 10, on September 15th, 2008, then they must retire on October 1st 2008.

    There are no options to stay longer to attain your next year of credited service. For instance several team members have asked me if they could stay 3 months past the July 1st departure date for retirees if it would allow them the next year of service so that they would have 32 years of service. The response from the National Parties was that this is not permissible under this program.

 

 

   1.  Take the $ 45,000 0r $ 62,500 in a lump sum minus the taxes.

 

    2. Rollover options that permit you to take the entire amount of your retirement bonus and

        put it into your GM PSP or your IRA. This option allows you to put this money away for 

        retirement without paying taxes and you will not have to pay taxes until you receive  

        distributions. Your tax rates at this future date after retiring should be lower and your

        money will have grown and compounded without tax impacts for the entire time until you

        and your family need it. This option also allows you to take a loan from your PSP and

        you pay yourself back interest. This rollover will not impact your 401k or 415 limits.

 

   3.  Your  Lump Sum is converted to either a single life annuity based on mortality tables or you may choose a 75% contingent annuity. This is when you receive a monthly check for the rest of your life based on life expectancy. A single life annuity is based on the retiree only. The 75% Contingent annuity covers the retiree and would pay 75% of the annuity amount to a contingent annuitant in the event of the retirees death.  

 There is a

        table that shows how much each one of these options pay monthly based on age and I
        will post these to my website in the next couple of days. An example of the monthly

        payout for a 50 year old member receiving the $45000 would be 244.77 per month for the

        single life annuity. The 75% contingent would pay out 207.92 in comparison however if

        the retiree dies , then their contingent annuitant would receive 75% of the $207.92. This 

        would equate to $ 155.24 a month until the contingent annuitant is deceased. This model

        is based on both of the retiree and the contingent annuitant being the same age of 50.

 

  4.   The last option is to take the lump sum in what is called partial rollover. In this option a

        retiree has the choice to receive a portion of their money in a lump sum that would be

        taxed at their normal rate and take the rest and put it into their PSP or IRA before 

        taxes. This would allow the partial rollover money to accrue interest without tax 

        consequences until the money is distributed in the future at presumably a lower tax

        rate. The retiree would still recieve a check for a portion of the money after tax 

        implications.

 

 

There are also options that have no incentive money attached to them. They are as follows:

    Mutually satisfactory Retirement of 50 years of age and 10 years of service. This option pays a prorated amount of monthly retirement money. It is not the full amount like you would have earned had you been eligible for one of the option one retirements. However this option does allow the team member to get a monthly check and you will receive your all important medical benefits.

 

     This option is the pre-retirement grow-in. This option allows anyone with 26, 27,28 or 29 years of credited service to grow into their 30 year retirement. Team members are treated like active employees however they just do not come to work. You receive a monthly check dependent on your years of service. Team members retain their medical benefits and agree to retire upon reaching their 30 years of service. The amount that you will receive will stay frozen until you reach retirement eligibility of 30 years and then you will receive the full retirement amounts just like you had worked 30 full years. Team members who accept this option can also earn wages from another job if they choose to. Because team members are treated like they are active there are no penalties for getting a second job.

    We are really happy that the 26 year option was added as we had been pursuing this option with the International UAW for our team members who would qualify for this new lower option.

 

   26 Years of Service……..$ 2750

   27 Years of Service………$ 2800 

   28  Years of Service……..$2850

   29  Years of Service……..$2900  

 

Again these are fixed rates that remained fixed until reaching 30 Years of Service. There are not incremental yearly increases for each new year of service.

 

 

This is a buy out option. The team member severs all ties to GM and they no longer have the medical benefits or any other benefits that we have been blessed to have. The GM corporation will buyout members with 10 or more Years of service for $ 140,000 and will pay members who have have less than 10 Years of service $70,000 to severe their employment . Please carefully consider all the ramifications if you are considering this option. There is no undoing any of these decisions after the seven day revocation periods.

 

 

 

The National Parties will be rolling out the details that I have listed above and take questions starting March 17th at all the General Motors Assembly and Powertrain Plants.( This includes our entire complex including SSPO)  I expect our plant to be one of the first that they visit. The election period which is the time frame that our Spring Hill Team Members will have to make a decision by is May 22, 2008. The Seven Day revocation period will end on May 29th, 2008. Team members will have to exit by July 1st, 2008 unless the team members will attain Option 1 eligibility after July 1st, 2008 but before January 1st 2009.Team members will have to exit under these qualifications the 1st of the month following their eligibility being met for 30 & out, 85 points or 60 &10 and no later than January 1st , 2009.