Chrysler first of Big Three to cut free life insurance for retirees
Chrysler has announced that it will be cutting its free life insurance program for its white-collar retirees. Under the former plan, retirees were given a life insurance policy at no charge that was equal to their last year of pay for anyone who retired before 2003, or $50,000 for anyone who retired after that cutoff date.
According to The Detroit News, Chrysler will allow those affected by the cut — which will become effective on June 1 — to buy into a voluntary plan at a reduced rate, and will also give those individuals a one-time pension boost of $4,000.
However, the cut will not impact union workers or retirees.
Chrysler is the first of the Big Three automakers to make such a cut. The Michigan-based automaker failed to release how much the move would save the company, but it is believed to be a fairly substantial amount.
Chrysler currently has about 14,000 white-collar retirees.
Sources from http://www.leftlanenews.com
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