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U.S. Supreme Court Briefs Submitted by General Motors-Hughes Pension Contributors

17 August 1998

U.S. Supreme Court Briefs Submitted by General Motors-Hughes Pension Contributors; Could Impact 33 Million Workers/Retirees and $60 Billion Pension Assets

    CALABASAS, Calif., Aug. 17 -- The following is being released
today by the Committee for Retiree Pension Rights:

    The independent General Motors-Hughes Aircraft retirees' Committee for
Retiree Pension Rights submitted briefs today to the U.S. Supreme Court in a
case that could impact 33 million workers and retirees in defined-benefits
pension plans.  The case is Hughes Aircraft v. Stanley I. Jacobson et al, U.S.
Supreme Court No. 97-1287.
    The briefs call what GM-Hughes has done a "sham transaction" to get its
fingers into the $1 billion ($1,000,000,000) over-funding generated by
employee contributions.
    GM-Hughes has switched (and depleted) pension assets from employees with
mandatory pension paycheck deductions to employees that had no paycheck
deductions.  GM-Hughes has thus been able to contribute nothing to this
retirement plan for 10 years.
    "At stake is ... $60 billion ($60,000,000,000) resting in similar
[contributory defined benefit pension plans] sponsored by other companies,"
said the Thousand Oaks, California "Star."
    Friend of the Court briefs were also submitted with support from the
Seattle Professional Engineering Employees Association (SPEEA), which
represents 26,000 Boeing engineers, and the National Employment Lawyers
Association.  SPEEA expressed their concern that a ruling in favor of
GM-Hughes would allow employers to significantly reduce pension assets without
judicial review.
    "The Supreme Court will decide [this] General Motors-Hughes Aircraft
dispute that could affect 33 million workers and retirees in defined-benefits
pension plans," said "The Washington Post."
    The 33 million retirees and employees that could be impacted by the
upcoming Supreme Court ruling can obtain more information from the Committee
for Retiree Pension Rights at:  http://members.aol.com/nrmet/crpr.htm.
    The supreme Court is expected to hear oral arguments in late fall 1998.