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

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →