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U.S. poised to clear way for Ford retiree health plan
U.S. poised to clear way for Ford retiree health plan
Posted on Thursday, December 10th, 2009 at 2:27 PM EST.(Employee News)
Ford Motor Co. would be allowed to transfer company securities to a voluntary employee beneficiary association (VEBA) trust to fund a new health plan for company retirees under a U.S. Labor Department proposal, the Automotive News reported.
The plan would cover more than 285,000 retirees and their dependents, as well as a small number of active retirees, the department said today in a statement, the trade paper said. The government proposed granting Ford’s request for an exemption under the Employee Retirement Income Security Act to let the VEBA plan keep a larger amount of securities than that allowed under the law, the statement said and the Automotive News reported.
Ford will contribute to the trust two promissory notes payable by the automaker to the VEBA, warrants to buy Ford common stock and $580 million in cash, the paper said. VEBA also will be funded with assets from other Ford health plans, the story said. (Automotive News)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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