Significant Health Care Relief for Auto Parts Retirees Available Through Auto VEBA Trust
First Ever Industry-Wide VEBA Eases Pension Pain for Early Retirees
(firmenpresse) - SAN FRANCISCO, CA -- (Marketwire) -- 10/19/11 -- The U.S. Bankruptcy Court for the Southern District of New York authorized creation of the Auto Retiree VEBA Trust -- a Voluntary Employee Benefit Association (VEBA) that will provide thousands of retirees of auto part manufacturers access to subsidized healthcare benefits thanks to a substantial federal tax credit made available through VEBA participation. This is the first ever industry-wide VEBA created to provide Health Coverage Tax Credit eligible benefits, as most VEBAs to date are associated with a single company.
The trust, set up to provide benefits to retirees of Metaldyne Corporation of Plymouth, Mich., represented by Farella Braun + Martel Restructuring & Insolvency practice partner Dean M. Gloster, was successful in its motion to establish a VEBA under Bankruptcy Code Section 105 and IRS Code Section 35(e)(1)(K). The Auto Retiree VEBA Trust benefits retirees, between the ages of 55 and 65, of Metaldyne and all other auto part manufacturing companies whose headquarters were, or presently remain, in the states of Ohio, Michigan or Wisconsin and with pensions currently trusted by the federal Pension Benefit Guaranty Corporation. Retirees of these companies, which also include Allis-Chalmers, Amcast, Collins & Aikman, Delphi, Hayes-Lemmerz International and dozens of others are eligible regardless of current state residency.
Auto Retiree VEBA Trust participants, many of whom were forced into early retirement, have the ability to take advantage of the federal Health Coverage Tax Credit, which reimburses 65 percent of health insurance and prescription drug premiums (including dental and vision care premiums of any combined program) for participants, their spouses and dependents. Reimbursement rates will rise to 72.5 percent if, as expected, President Obama renews the Trade Adjustment Assistance program on October 21, 2011.
"The Auto Retiree VEBA Trust offers a lifeline to tens of thousands of retired auto parts workers across the country facing high healthcare costs who were forced to retire at a much younger age than expected, with reduced pensions," said Gloster. "We hope that the Auto Retiree Trust VEBA and its use of the Health Coverage Tax Credit can provide affordable critically important benefits for these retirees."
To date, Farella Braun + Martel Restructuring & Insolvency attorneys have set up several large-scale VEBAs for retirees of companies, including Delphi Corporation and Delta Air Lines.
Farella Braun + Martel represents clients throughout the United States and abroad in sophisticated business transactions and high-stakes commercial, civil and criminal litigation. Founded in 1962, the firm is headquartered in San Francisco and maintains an office in the Napa Valley focused on the wine industry. Farella Braun + Martel lawyers are known for their imaginative legal solutions, dynamism and intellectual creativity. With an unwavering service ethic and interdisciplinary team approach, the firm is committed to advancing clients' objectives in the most effective, coordinated and efficient manner. Farella Braun + Martel is a green business.
Melinda Hepp / Traci Stuart
Blattel Communications
415.397.4811
/
Cathy Cone
Cone Insurance
713.463.8575
Cheryl Loof
Farella Braun + Martel LLP
415.954.4433
Dean Gloster
Farella Braun + Martel LLP
415.954.4472
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Datum: 19.10.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 1047553
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