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Auto Workers Fear Deep Cuts in Pensions
If Chrysler, GM go to bankruptcy court, 1 million workers likely to take pension cuts
By Gabriel Winant
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Posted Apr 24, 09 8:03 AM CDT
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(Newser)
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As Chrysler and possibly GM head toward bankruptcy court, nearly a million retired workers fear deep cuts to their pensions and health plans, reports the Washington Post. Though the Obama administration is hoping to mitigate cuts, the plans are underfunded by billions of dollars. “I feel betrayed,” says one Chrysler worker. “They offered these incentives for us to take early retirement, and I took one. Now it looks like my fixed income wasn't so fixed.”
Though negotiations to avoid bankruptcy are still ongoing, a move to court looks increasingly likely. In that case, the federally run Pension Benefit Guaranty Corp. might have to take over the pension plans. The massive job “would likely strain PBGC's resources,” says a government report.