Dear NCRO Member…
Recently there have been a couple of pension related issues that have
come up that the NCRO is investigating on your behalf.
First, you should have received some Annual Funding Notice(s) from
Chrysler that reflects a continuing decline in pension funding. In addition
there was a blue slip included with the Chrysler Group LLC Pension Plan
Notice that stated that Chrysler was electing to take advantage of the law
that allows them to delay funding for plan years 2010 and 2011. In addition
to this, Chrysler has stated in their 10K filling with the SEC that they plan
on contributing $267 million into its U.S. pension plans in 2012.
However, they do not delineate how much will go into salaried pension plans versus Union pension plans. In the next several days we will be sending a note to Chrysler with several questions related to their short and long term pension funding strategies and we will request a meeting with them so we can discuss this and how it affects retirees.
However, at this time we do not have a concern that the current funding level puts our pensions in jeopardy.
In another somewhat related issue, you should have heard that Ford has recently announced a plan to offer lump sum buy-outs to salaried retirees. GM has also said that they are investigating this so there is reason to assume that Chrysler might be investigating this as well.
While we don’t know how these lump sum buy-outs may be executed, we are developing a plan to make sure we are prepared to discuss this with Chrysler. We will include this as a discussion point if we are successful in scheduling a meeting with Chrysler.
As soon as we have anything to report, we will let you know.
Jay Kuhnie – President