Retirement Rumors

“Well, someone talked to someone, who heard it from a pretty good source that someone in Detroit said….” We’ve all heard these rumors floating around about future buyouts.  Unfortunately, that’s just what they are - rumors. There is nothing concrete to announce.  No details to consider.  But what if there were?  Whether the company gives employees an incentive to retire or not, everyone should know if and when they are pension eligible.   Don’t wait for an announcement or a new contract to motivate you to find out.  If you don’t know when you are eligible to retire, you need to speak with your Benefit Representative.

Dependent Heath Care

The Hourly Dependent Verification Project ended on May 1, 2007.  Hourly employees and retirees verified 241,258 dependents and voluntarily cancelled 12,367 dependents.  Health care coverage for these dependents ended on April 30, 2007.

A number of hourly employees and retirees failed to call to verify their dependents.  As a result 13, 974 dependents also had their health care coverage cancelled as of April 30, 2007.  If these employees or retirees wish to have health care coverage reinstated, they should call the GM Benefits & Service Center at:

                        1(800) 489-4646

Credited Service

Someone made a statement and asked, “I hired in at GM in March of 1978, so I’ll have my 30 years in March of 2008, right?”  The answer is, “Not necessarily.”  Another question that comes up often is, “I know overtime can give me extra credited service toward retirement, but it only counts in the last year, right?”  The answer again is, “Not necessarily.”

Credited service and seniority are two totally different things.  Your seniority date is just a starting point. Credited service is based on hours compensated in a calendar year that starts for everyone on January 1 and ends on December 31.   As soon as an employee is paid for 1,615 hours in a calendar year, they have a year of credited service and cannot earn any more for that year.

Someone who was hired in March and works 1,615 hours before December 31 can get 1.0 of credited service for that year.

So, in the example above, our March ’78 person could have 29.0 in credited service on January 1, 2007 and as soon as they are paid for 1,615 hours, their credited service would be 30.0.  With overtime, this could easily be reached by September 1, 2007, which is six months sooner than the 30th anniversary of the seniority date.  How can that happen?  Credited service is based on hours, not seniority.

Priority Health

Lots of information regarding healthcare and claims is available at www.priorityhealth.com.  Log on and you will find information about doctors, wellness, claims, approved drug lists, and much more.

Brand Name/Generic Drugs

This is one of the most common problems we are asked about in the Benefits Office.  The GM contract covers only generic drugs, and for most folks this is not a problem.  Drug manufacturers claim active ingredients are the same in generic as they are in brand name drugs, but some folks have a problem with the inactive ingredients.  If a generic drug does NOT work for you, have your prescribing physician contact your health insurance carrier and ask for an authorization for the brand name drug.  This is very important. Approved brand name drugs must be authorized before they can be dispensed.

Waiver for Deductions on Life Insurance

Active and retired employees are currently enjoying a waiver of premiums for optional and dependent life insurances.  Active employees will have premiums deducted again in June.  Retirees will see deductions once again in July.

Local 730 Benefit Reps:  Grant Holst, Jolan Jackson, Lauri Veneman, Denise Deboer, and Carrie Jackson

Local Calls:  246-3450 

Long Distance Calls:  1 800 730-8292