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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.
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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.
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