UAW/GM Retiree Benefits Explained
Typically, the benefits to which United Auto Workers retirees are entitled include pension payments, healthcare benefits, life insurance, and death benefits. The pension benefits are provided either by GM or the salaried plan, but the timing and amount of the benefits vary. Most UAW/GMs retirees are part of a pre-2007 plan in which their benefits are paid by GM and generally they are paid immediately in accordance with normal retirement ages and vesting. In addition, there is a group of GM retirees that were transferred to Delphi and whose pensions are being paid by the PBGC.
Healthcare benefits for UAW/GM employees continue through retirement . The level of benefit depends upon the employee’s date of hire, years of service, date of retirement, and date when GM first began charging retirees for healthcare benefits. Even if a UAW/GM retiree obtains other healthcare coverage, he or she remains eligible for healthcare under the UAW-GM plan. Many GM/UAW retirees were terminated from employment during the 2009-2012 period ("the Great Recession") and those employees may be eligible for income from a Special Separation Package or Early Retirement Package.
There are also benefits available to a surviving spouse, such as life insurance benefits and death benefits. A legal service can assist a UAW/GM employee and a surviving spouse with the application and enrollment of the required benefits.
Legal Support Provided to UAW/GM Retirees
The specific services offered to UAW/GM retirees who are seeking legal assistance on a personal basis, all of which are offered by firms such as Miller Cohen and Witzke Berry, are listed below.
Estate planning (including trusts), Powers of Attorney, Packaged wills, Revocable or living trusts, Medicare Assessments, These services may be tackled via a flat fee for a package of services, such as a basic estate plan, or billed at hourly rates, with fees ultimately determined by the complexity of the work involved.
Probate Services (including Guardianship issues, Conservatorship issues), Workers Compensation, Unemployment, Eminent Domain, Employment Law, Civil Rights violations, Social Security Disability, Estate Litigation, Injury Claims, Employment Contract issues, Pension/Benefit issues, Real Estate matters (Purchases, Transfers, Avoiding probate with effective use of realty deeds), Support issues, Collection issues (how/when to file lien statements, how to garnish wages)
Real Estate matters (Purchases, Transfers, Avoiding probate with effective use of realty deeds), Landlord-Tenant issues (Unlawful Evictions, Condo-Co-op issues), Business Law issues (LLC formation, Contract issues), May be handled on a flat fee (for example: Trust Deed Transfer for a condo may be done for a flat fee of $250.00. If the issue is more complex, it may be addressed under a standard hourly-rate situation, depending on the complexity of the matter involved.
Accessing Legal Aid
The UAW/GM Retired Employees Legal Services Plan will consider any active employee or retiree of the UAW/GM groups of GM, Saginaw Steering Gear and Delphi (including Surviving Spouses) eligible for services under the Plan. Retirees from other groups of General Motors employed by the same UAW local can be considered for eligibility and potential service coverage under the Plan. To apply for services under the Plan, an eligible individual should complete a Legal Services Application Form which is available on the website. The completed application form must state the legal issue, question or matter requested to be covered under the plan. If the applicant does not have a completed application form and requires some immediate assistance, applicant may contact the Legal Services Group. The UAW/GM Retired Employees Legal Services Group Client Benefits Staff will review and contact applicants to verify eligibility and eligibility for services under the plan and to gather additional information. All applications are reviewed for qualification (i.e., is the applicant a member of the class of people covered by the program) and coverage of the legal services requested under the program. Applications to have a will or a trust prepared will be referred to Secrest Wardle attorneys specializing in estate planning. Secrest Wardle is the third-party Administrator with the UAW/GM Retired Employees Legal Services Group.
Retiree Legal Dilemmas
Common Legal Issues Faced by UAW/GM Retirees
Every retiree’s situation is unique, but in our experience, there are a handful of issues that commonly create disputes for UAW/GM retirees. Closest to the heart for many retirees is retirement benefits, which may include pension and 401(k) plans as well as GM health care benefits. A dispute might arise, for example, over the terms of a benefit, the amount of a benefit or the duration of a benefit. Health care concerns might arise when a retiree feels that they were unfairly denied a benefit or their coverage was improperly terminated. For all benefits, disputes may come up over the calculation of a benefit or what third-party may be responsible for payment.
Older retirees may also need the assistance of a lawyer for estate planning issues . A spouse may pre-decease a retiree or a retiree may become widowed. Either way, a retiree may need to update their estate planning documents. Estate planning also includes planning for incapacity, whether due to Alzheimer’s disease, Parkinson’s, a stroke or other condition.
For retirees who have already drafted an estate plan, we often see eventual need for assistance with probate. If you own property or have the size of your estate under a certain threshold, which varies by state, the estate may need to go through probate in order to pass any property from the decedent to their heirs or beneficiaries.
As you can see, the legal services offered through the UAW/GM Legal Services Plan can provide a critical role in either preventing disputes with retirement benefits and estate planning issues or in resolving them.
Testimonials and Case Studies
While all cases and claims handled by the UAW/GM Retiree Legal Services Division may not result in an award of benefits, and past performance is not necessarily indicative of future results, the following are examples of past successes.
Case Study 1: Mr. Smith, a UAW retiree, was denied VEBA coverage after his doctor submitted a chrage for a sleep study. In the on-site hearing, the Division representative proved to the arbiter that Mr. Smith qualified for coverage as a life-long (30 years) UAW member, and he was "never an active" UAW employee. The Division secured coverage for Mr. Smith.
Case Study 2: Mrs. Doe, a surviving spouse, was denied benefits when she submitted her deceased husband’s death certificate. When the Division reviewed the deceased’s file, a letter dated from April 15, 2002 from an associate of the claims administrator, the letter stated "We are currently awaiting the proper documentation and will be happy to re-evaluate the remaining claims once we receive the correct documentation." This claim was approved.
Testimonial 1:
"I would like to extend my appreciation for the thoroughness and professionalism displayed by the attorney assigned to my case. He carefully analyzed the issue at hand and provided me with the service to which I was entitled. I would highly recommend the Retiree Legal Service to any retiree who finds themselves in need of a clear understanding of the intricacies within the VEBA."
– J.M.
Testimonial 2:
"I was in need of legal assistance for a matter pertaining to my VEBA account. I was hesitant and unsure of whether to contact the Legal Service. But I’m very glad I did. My attorney was very knowledgeable and quick to process my claim. I would recommend this service to anyone."
– K.N.
Stay Informed of Your Legal Rights
A pressing need exists for UAW/GM retirees to know their rights under various laws and how to enforce them, especially since such information tends to change frequently. At present there is no comprehensive network for UAW/GM retirees to keep abreast of their rights. The resources offered by the UAW no longer cover such matters. One exception is the GM-UAW Retiree Center’s Retirees News, which purports to be for UAW retirees, although there are suspicions about who runs that ‘silly newsletter.’ Unfortunately, the UAW itself does not properly advise UAW/GM retirees on their rights with various agencies; nor does the UAW pursue legal rights on behalf of UAW/GM retirees.
Congress has only legislated for a very few automobile company retirees. The basic law affecting retirees of bankrupt companies like General Motors is the federal Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. ยงยง 1001 to 1461. ERISA covers retirement plans, health (medical) care plans, and life insurance plans. However, ERISA does not cover automobile company retiree Health Maintenance Organizations (HMOs) and retiree physician/provider organizations, which are covered by other federal laws.
For comprehensive coverage of retirees’ rights under many laws, such as Social Security and Medicare, see Consumer Action Handbook 2010, U.S. Government Publishing Office, GPO Stock Number 053-001-00028-1. See also the United States Government Manual, GPO Stock No. 003-001-00504-5. For details of various federal and state health care programs and benefits, see Health Insurance Answer Book 2009 by CCH Incorporated . For the complete set of U.S. laws, see The Compilation of Federal Laws, 111th Congress, 1st Session, As Enacted, Volumes 1 through 12, September 2009; and/or Digest of Federal Laws, Thirteenth through Seventeenth Congresses, 1813 to 1823, 1961 edition, GPO Stock Number 052-003-00295-5.
For details of various federal and state consumer laws, most of which are applicable to retirees, see Wards Autoguide to Consumer and Protection Laws, 5th Edition, by Dan Jubelirer, 2007. See also Consumer Law Manual: How to Use and Enforce Your Consumer Rights Against Any Entity, by Joan Claybrook, 2008 edition online at www.publiccitizen.org., and Frequently Asked Consumer Questions by National Association of Attorneys General, 2008 edition online at www.naag.org. For practical details in handling any number of consumer legal issues, see The Desktop Guide to Copyright Law, Search and Seizure Handbook, Right to Privacy, The RICO Resource Kit, The Telephone Consumer Protection Act, The Consumer Fraud and Abuse Prevention Act Handbook, and The Unfair and Deceptive Trade Practices Act Handbook dated 2006, all by Richard Stim, Nolo Press.
UAW/GM retirees can go to the Cyberbuddy Forum and the UAW Consulting Engineer Forum both available online. For a more comprehensive list of webinars and other support from Mr. Balanced Pension, go to www.survivorbb.com, which features many subjects, including:
Mr. Balanced Pension provides free, limited assistance on these subjects via an "Ask Ray" section of the Survivor BB website.