P&A Providers & Administrators
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

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →