DOCUMENT NO. 117 - GM VOLUNTARY RETIREMENT LEAVES PROGRAM
Document No. 117 pertains to provisions in the 1990 GM/United Auto Workers Union-National
Collective Bargaining Agreement that govern a voluntary retirement and standby leave
program for two categories of GM hourly rated employees.
Only those provisions in this agreement that impact on the ET or reflect differences
between the two categories of employees are summarized below. Ask the beneficiary
which category applies.
This program is made available to eligible employees on a case-by-case basis. If not
enough category I employees participate, it is made available to category II. Employees
must voluntarily apply and be accepted. The choice to participate is irrevocable (with
CHARACTERISTICS OF CATEGORY I PARTICIPANTS
Employee must be eligible for regular retirement within 2 years and agree to retire
the first day of the month following the month they are first eligible for regular
Employees receive 85 percent of base pay, including holidays plus cost-of-living adjustments.
There is no limitation on concurrent outside earnings and no loss of most employee
Consider these 85 percent payments to be payments “on account of retirement.” This is because participating employees perform no further services for these payments
and payments are made only if the employee agrees to retire. Do not count under ET.
CHARACTERISTICS OF CATEGORY II PARTICIPANTS
Employees are not required to be within a specified time of regular retirement. There
are no limitations on concurrent outside employment.
Employees must agree to being recalled to full employment any time within 24 months
at any GM location in which they have seniority. Recall is discretionary with management.
Employees receive 85 percent of base pay until recalled or for 24 consecutive months,
whichever is first. Vacation pay and all bonuses are not reduced.
If a layoff occurs before employee is recalled, he is subject to layoff and can sign
up for unemployment compensation.
Consider these 85 percent payments to be “wages” for ET purposes even though the employee performs no direct services. These payments
do not qualify as payments “on account of retirement” because there is no agreement to retire. Count payments under ET in the month for
which paid. Do not post to the unposted detail portion of the MEF.