Contract Changes
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Below are the changes made to GM Retiree benefits as a result of recent contract negotiation between the UAW and GM effective July 1, 2009:

Retail (34 day supply) -
    $10 Generic
    $25 Brand
Mail Order (90 day supply)
    $20 Generic
    $50 Brand

Catastrophic Plan for Retirees and Surviving Spouses

This is no longer offered.  Retirees and surviving spouses currently in Catastrophic Plan will be given the opportunity to join regular plan.

Coverage for Erectile Dysfunction (ed) Medications (e.g.) Viagra, Cialis and Levitra

This is no longer offered, except in prior authorized cases of Pulmonary Arterial Hypertension.

Coverage for the proton pump inhibitor drug class.

This is no longer offered, except in prior authorized cases of Barrett's Esophagitis and Zoellinger-Ellison Syndrome).

This is no longer offered.

This is no longer offered

$100 (waived if admitted)

Medicare Part B Special Benefit (76.20 per month for retirees enrolled in Medicare.

This is no longer offered by health plan.  This modification is not applicable to approximately 21,500 retirees and surviving spouses who retired or began receiving surviving spouse benefits before October 1979, and whose benefit is provided through the pension trust.  The payments will continue for these pre-1979 retirees and surviving spouses.

" Low Income Retirees" (less than $8000.00 annual Pension and monthly basic benefit rate of less than $33.33)

Monthly contribution requirement of $11 (flat rate regarless of family status).  In all other respects, these retirees and surviving spouses will be included in the same plan as other retirees and surviving spouses.

No Change (currently $11/single and $23/family).

No change (currently $164 annual deductible and $273 annual (single) out-of-pocket maximum).

Consistent with changes made to the active medical program, the retiree medical program will not allow the designation of new "sponsored dependents" or "principally supported children."  the provisions allowing new dependents to be added as a result of adoption or legal guardianship will continue in effect.

At various points in the process, the Company, the Government, and other creditor groups argued that the pension plan covering UAW retirees should be terminated.  The Plan's funding status has been negatively impacted by conditions in the stock and bond market, and GM's UAW Pension Plan is currently underfunded.

A pension termination would have been devastating on UAW retirees, since the government's pension insurance program does not guarantee full benefits.  In particular, early retirees who are receiving the Social Security supplemental benefits would have seen very dramatic reductions in their pensions.

The Company also demanded that the pension plan be "frozen," which would have meant that employees would cease earning additional years of credited service, or that the UAW agree not to bargain to improve pension benefits over the next ten years.

We successfully fought these efforts to terminate, freeze, or otherwise restrict the benefits payable under the pension plan for UAW retirees.  The agreement requires that GM maintain the UAW pension plan without change, which means that retirees will continue to receive benefits at their current levels without interruption or reduction.  We also did not agree to any limits on our ability to bargain over pension benefits in future negotiations.

Both GM and the Treasury Department also argued that GM should eliminate its responsibility for retiree life insurance and legal service benefits, and that those benefits-if any-should be shifted to the VEBA.  We sucessfully resisted those efforts.  Both the Life Insurance and Legal Service benefits will remain the responsibility of GM and will continue in accordance with the current agreements covering those programs.