With a major auto bankruptcy looking more and more likely every day, I wanted to share this article about how retiree pensions could be impacted.
“Almost 930,000 people are covered under GM and Chrysler’s pension plans, and union officials estimate that more than 60,000 active and retired auto workers live in northwest Ohio and southeast Michigan,” The (Toledo) Blade reported in a story earlier this week.
According to the story, some retirees could conceivably lose up to 70 percent of their pensions- most of their monthly income. And unfortunately, all they can do right now is wait and watch what happens.
“I guess there aren’t any guarantees,” said one of the workers who is 51 and retired after 31 years on the job. “It was like, when we left, we asked, ‘Nobody can touch this, right?’ And they said, ‘Yeah, nobody can touch this.’ But only a very small percentage of that pension is guaranteed.”