General Motors 2011 Annual Report Download - page 21

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Benefit Guarantee Corporation (PBGC) claims from the termination of the Delphi pension plan. We maintained the obligation to
provide the difference between the pension benefits paid by the PBGC and those originally guaranteed by Old GM under the DBGA.
U.S. Salaried Benefit Changes
In January 2012 we amended the U.S. salaried pension plan to cease the accrual of additional benefits effective September 30,
2012. Active plan participants will receive additional contributions in the defined contribution plan starting in October 2012.
In 2009 U.S. salaried benefit changes reduced the salaried life benefits and a negative amendment to the U.S. salaried retiree
healthcare program reduced coverage and increased cost sharing.
2009 UAW Retiree Settlement Agreement
In 2009 Old GM and the UAW entered into an agreement which permanently shifted responsibility for providing retiree healthcare
to the new plan funded by the New VEBA. Under the terms of the agreement, we are released from UAW retiree healthcare claims
incurred after December 31, 2009.
At December 31, 2009 we accounted for the termination of our UAW hourly retiree medical plan as a settlement, and recorded a
settlement loss of $2.6 billion.
IUE-CWA and USW Settlement Agreement
In September 2009 we entered into a settlement agreement with MLC, The International Union of Electronic, Electrical, Salaried,
Machine and Furniture Workers — Communication Workers of America (IUE-CWA) and United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). The approved settlement agreement
resulted in remeasurements of the U.S. hourly defined benefit pension plan, the non-UAW hourly retiree healthcare plan and the U.S.
hourly life plan to reflect the terms of the agreement. The settlement agreement was expressly conditioned upon and did not become
effective until approved by the Bankruptcy Court in MLC’s Chapter 11 proceedings, which occurred in November 2009. Several
additional unions representing MLC hourly retirees joined the IUE-CWA and USW settlement agreement with respect to healthcare
and life insurance. The remeasurement of these plans resulted in a decrease in a contingent liability accrual and an offsetting increase
in the projected benefit obligation (PBO) or accumulated postretirement benefit obligation (APBO) of the benefit plan.
2009 CAW Agreement
In March 2009 members of the CAW ratified an agreement intended to reduce costs in Canada through introducing co-payments for
healthcare benefits, increasing employee healthcare cost sharing, freezing pension benefits and eliminating cost of living adjustments
to pensions for retired hourly workers. The 2009 CAW Agreement was conditioned on Old GM receiving longer term financial
support from the Canadian and Ontario governments and those governments agreed to the terms of a loan agreement, approved the
GMCL viability plan and provided funding to GMCL. The Canadian hourly defined benefit pension plan was remeasured in June
2009.
The CAW hourly retiree healthcare plan and the CAW retiree life plan were also remeasured in June 2009. Additionally, as a result
of the termination of employees from the former Oshawa, Ontario truck facility, GMCL recorded a curtailment gain associated with
the CAW hourly retiree healthcare plan.
Venezuelan Exchange Regulations
Our Venezuelan subsidiaries changed their functional currency from Bolivar Fuerte (BsF), the local currency, to the U.S. Dollar,
our reporting currency, on January 1, 2010 because of the hyperinflationary status of the Venezuelan economy. In January 2010 there
was a devaluation of the Venezuelan currency and establishment of dual fixed exchange rates, an essential rate and a nonessential rate.
General Motors Company 2011 Annual Report 19