Mexican Media Brands
UAW Healthcare Trusts Report $20.7 Billion Funding Shortfall
Voluntary employees’ beneficiary associations set up eight years ago to cover medical expenses for retired United Auto Workers union members widened their funding gap fourfold last year to $20.7 billion, according to U.S.
#labor #economics
Share
Voluntary employees’ beneficiary associations set up eight years ago to cover medical expenses for retired United Auto Workers union members widened their funding gap fourfold last year to $20.7 billion, according to U.S. Dept. of Labor filings.
The three VEBAs serve some 700,000 General Motors, Ford and Fiat Chrysler Automobiles retirees. The combined obligations of the trusts jumped 23% to nearly $81 billion last year, according to the filings. Most of the increase was due to accounting changes and actuarial adjustments to the average expected lifespans of the beneficiaries.
Last year the trusts paid out $3.2 billion in medical benefits. The increase in their obligations meant the trusts ended last year 74% funded, down from 93% at the end of 2013.
RELATED CONTENT
-
Marchionne Cancels Trip to Paris Auto Show
Fiat Chrysler Automobiles CEO Sergio Marchionne has cancelled a planned appearance at the Paris auto show on Thursday.
-
UPDATE: Unifor Ratifies GM Labor Pact by 86% Margin
Hourly workers at General Motors Co.’s CAMI assembly plant in Ingersoll, Ont., will vote today whether to accept an agreement to end a strike they began on Sept. 17.
-
UPDATE: UAW, GM Reach Tentative Labor Deal
General Motors Co. and the United Auto Workers union have reached a possible deal on a new four-year labor contract covering some 48,000 of the union’s hourly workers in the U.S.