Navigation Links
U.S. Labor Department proposes exemption to allow new health plan for General Motors retirees to acquire company securities
Date:9/17/2009

WASHINGTON, Sept. 17 /PRNewswire-USNewswire/ -- The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) today announced a proposed exemption that, if granted, would allow the General Motors Co. (GM) to transfer company securities including common stock, preferred stock and a $2.5 billion promissory note, to a health plan established for the company's retirees. The retiree health plan will cover approximately 700,000 retirees and dependents when it becomes effective on Dec. 31, 2009.

GM is the successor company that purchased substantially all of the assets of General Motors Corp. (the old GM), which filed for bankruptcy on June 1, 2009. GM is headquartered in Detroit, Mich.

The large transfer of employer securities to the plan violates the Employee Retirement Income Security Act (ERISA). ERISA prohibits certain plans from holding large percentages of plan assets in the form of employer securities. The law gives the department authority, however, to grant exemptions that protect the interests of plan participants and beneficiaries.

The exemption would allow the securities transfer, permit GM and its health plans to reimburse each other for benefit payments mistakenly paid by the wrong entity during the transition to the new plan, and permit GM to recover mistaken deposits to the plan.

A major condition of the proposal is the appointment of an independent fiduciary to represent the plan with regard to GM securities transactions. The independent fiduciary will determine in advance of taking any action regarding the securities that the action is in the interests of the plan and its participants and beneficiaries. The proposed exemption also requires the review of benefit payments by an independent third party administrator and auditor for each of the plans and an objective dispute resolution process. In addition, the proposal set time limits for return of mistaken deposits and an objective dispute resolution process.

The proposed exemption is scheduled to be published in the Sept. 18, 2009, edition of the Federal Register. Comments on the proposal and any requests for a public hearing should be submitted to gm@dol.gov or by fax to 202-219-0204. Paper-based comments should be sent to the Office of Exemption Determinations, Employee Benefits Security Administration, Room N-5700, U.S. Department of Labor, 200 Constitution Ave. N.W., Washington, D.C. 20210, Attention: Application Number L-11568.

U.S. Department of Labor releases are accessible on the Internet athttp://www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visithttp://www.dol.gov/compliance.


'/>"/>
SOURCE U.S. Department of Labor
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. GENova Biotherapeutics signs collaboration agreement with Prime BioResearch
2. 3rd Annual Collaborative Drug Discovery - UCSF Community Meeting for Catalyzing Humanitarian and Commercial Research to be Held October 1st
3. Caraco Pharmaceutical Laboratories, Ltd. Announces Appointment of F. Folsom Bell to Board of Directors
4. Dominion Diagnostics -- The Only Specialty Urine Drug Monitoring Laboratory to Offer Quantitative Detection of Tapentadol (Nucynta(TM)) by LC/MS/MS
5. Bangkok Hospital Group and IBM Collaborate on Smarter Healthcare Initiative
6. Collaborative Research Study Aims to Prevent Firefighter Injury Nationwide
7. Cord Blood America Nearing Completion of Construction of Las Vegas Laboratory; One of the Largest Cryogenic Storage Labs in U.S.
8. Mayo Clinic Center for Innovation Collaborative Symposium on Innovations in Health Care Experience
9. Old Colony Elder Services Collaborates with The Charity Guild of Brockton to Offer "Special Foods for Special People" Program
10. WRX Launches National Labor Efficiency Quality Award
11. RES-Q Labor Resource Management Ranked as the Top Staff Scheduling System Solution in KLAS 2009 Special Report
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/22/2017)... ... March 22, 2017 , ... ... a PCSK9 inhibitor prior authorization (PA) form for prescribers to improve patients’ access ... of the helpful tools published as part of the article entitled “PCSK9 ...
(Date:3/22/2017)... ... March 22, 2017 , ... Soriant recognizes that ... bypasses that. Healthcare facilities across the country are always forced to focus ... and hospitals, across the country, an efficient and quick way to estimate savings ...
(Date:3/22/2017)... ... March 22, 2017 , ... In ... and print media enterprise focused on cancer patients, cancer centers and advocacy groups, ... special 12-part educational video series, “No Ifs, Ands, or Butts,” that focuses on ...
(Date:3/22/2017)... ... March 22, 2017 , ... ... that its digital marketing solutions have enabled Children’s Hospital of The King’s Daughters ... , Recognizing the value of a digital marketing approach, the 206-bed pediatric ...
(Date:3/22/2017)... ... 2017 , ... An intensive search of the medical literature has revealed no ... PhD. He says investigating this possibility, is important because Miami-Dade in 2016 ... infections with HIV. , His findings appear on Analizir.com. . Dr. ...
Breaking Medicine News(10 mins):
(Date:3/22/2017)... Research and Markets has announced the addition of the "Global ... 2025" report to their offering. ... The Global Respiratory care devices Market is ... next decade to reach approximately $38.27 billion by 2025. ... all the given segments on global as well as regional levels ...
(Date:3/22/2017)... NEW YORK , March 22, 2017 /PRNewswire/ ... pharmaceutical industry, Chinese pharmaceutical packaging market size increased ... during 2010-2016. From 2017 to 2021, the market ... 10% and is expected to outnumber RMB140 billion ... two-child policy, the rapid development of biological agents ...
(Date:3/22/2017)... FALLS, N.J. , March 22, 2017  CANTEL MEDICAL ... Jorgen B. Hansen , President and CEO, will be presenting ... Conference at the Westin Grand Central Hotel in ... Wednesday, April 5, 2017 at 3:00 p.m. ET. In addition, ... day. A live audio webcast will be ...
Breaking Medicine Technology: