Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Former GM Execs Sue for Retirement Benefits

May 10, 2011
3 min to read


DETROIT — More than 100 former General Motors executives are suing the automaker in federal court to recoup pension benefits slashed during the company's historic bankruptcy.


The retirees, including former vice presidents and high-ranking managers, are trying to recoup benefits plus interest and want a federal judge to order GM to accurately pay future benefits, The Detroit News reported.

Ad Loading...


The lawsuit, filed in U.S. District Court in Detroit, threatens to undo a cost-cutting move that helped GM shed billions in debt and emerge from bankruptcy court as a new, leaner company. The complaint was filed hours ahead of GM's expected announcement today that it is investing $2 billion in plants in eight states.


The executives suing include a number of former GM vice presidents, including John G. Middlebrook, who was vice president and general manager of vehicle brand marketing. He also was a general manager of the Chevrolet Division and helped launch GM's now-shuttered Saturn division.


Others suing include Richard C. Nerod, retired president of GM-Latin America, Africa and Middle East; and Donald W. Hudler, a GM vice president and former president of Saturn.


The retirees and surviving spouses are spread across the U.S., from Michigan to Florida; two are in England.


A GM spokesman, Jim Cain, said the claims were without merit.

Ad Loading...


"Sacrifices were made by every stakeholder, including former executives, to create a foundation upon which the new GM can thrive," Cain said. "These former executives previously requested that the administrator of the executive retirement plan review their entitlement to certain benefits. The administrator denied their claim after thoroughly reviewing the matter. We are confident that the plan administrator properly considered and denied their claim."


The retirees' lawyers, Kathleen Bogas and Brian Koncius, could not be reached immediately.


In June 2009, General Motors Co. cut its senior executive pensions worth more than $100,000 by two-thirds in bankruptcy reorganization.


For former top executives, GM saved $221 million by ending a portion of its Supplemental Employee Retiree Plan.


Most top executives saw their pensions cut by two-thirds, including former GM CEO Rick Wagoner, whose pension fell from roughly $20 million to about $8.5 million.

Ad Loading...


Overall, GM saved $4.6 billion in trimming pension and retiree health care benefits during its bankruptcy reorganization, the company said in a filing last year.


GM said it saved $2.7 billion by eliminating health care benefits for salaried retirees 65 or older and eligible for Medicare and capping the amount it will spend on retiree health care for salaried retirees younger than 65.


The Detroit-based automaker is giving salaried retirees $260 a month until they turn 65 and qualify for Medicare. That money can be used for health expenses.


GM is limiting salaried retiree life insurance to $10,000 for current retirees. But it ended the insurance for its former top executives.


The company also saved $3.3 billion by canceling a monthly payment of $66.70 for its hourly pension plan that was to start on Jan. 1.

Ad Loading...


The retirees challenged the new pension benefits in November, arguing GM is providing benefits that "are substantially less than" what should be provided, according to a complaint filed in U.S. District Court in Detroit.


GM failed to respond to the retirees' challenge within 60 days, however, according to the lawsuit. So the retirees filed an appeal with GM's Executive Compensation Committee.


Janice Uhlig, administrator of the company's plan, responded a week later, telling them the claims were denied, according to the lawsuit.




More Industry

Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
Ad Loading...
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →