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Gossip & Opinions / Re: GM goes bankrupt and you get f*cked
« Last post by Dave D on Today at 09:05:28 PM »62.
He said had a GM pension until 2012 (age 75) when they went bankrupt and the pension stopped along with his medical care.
He must have taken the lump-sum pension buy-out as indicated in the article below.
Medicare only covers so much and has lifetime limits which his wife may have exceeded.
He and his wife would have been on Medicare at age 75.
Here's an article describing what happened with the GM pension for Union employees.
https://legalclarity.org/what-happened-to-the-gm-pension-with-prudential/
He must have been a salaried employee, not Union.
https://www.forbes.com/sites/joannmuller/2012/06/01/gm-unloads-26-billion-in-white-collar-pensions-could-union-workers-be-next/
General Motors said Friday it will offer 42,000 white-collar retirees in the U.S. a lump-sum payment in lieu of their monthly pension check and will transfer pension responsibility for 76,000 others to a group annuity plan managed by Prudential Insurance.
GM isn't the first to try to unload a huge chunk of its pension debt. . In April, Ford said it would offer 90,000 of its retired engineers and office workers the chance to take a lump sum payment now and forgo their monthly pension checks for the rest of their lives. That program is just getting under way so it is too early to know how many people will accept.
GM's offer comes with a twist, though: the option to continue receiving the same monthly benefits from Prudential through a group annuity plan. That could be more appealing to retirees worried about whether their money would last if they accepted a a lump-sum. Eligible retirees have until July 20 to decide on their payment options. The transactions are expected to be completed by the end of 2012, and Prudential would then assume responsibility for the pensions in January 2013.
I didn’t think Medicare has lifetime limits. There are limits to hospital stay length. And depending on your coverage there is a portion that is paid, but at that age they aren’t garnishing wages.
You have to enroll in the program at 65 and they will cap what you can receive? Seems like a scam program. Poor guy was probably tricked into paying his wife’s medical bills.
Okay I just read the first linked article. Pension wasn’t lost it transferred ownership. I’ll read the second article and adjust my comment but if he took the lump sum in 2012 he obviously thought he wasnt living this long or he thought Prudental was going belly up.
I wonder how long before government pensions become privatized annuities?

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