UAW Retiree Medical Benefits Trust finalizes transactions providing $4.35 billion in funding for retiree health care. Deal closed Jan. 21. Proceeds from sale will fund retiree health care.
DETROIT, Jan. 21, 2014 /PRNewswire/ -- The UAW Retiree Medical Benefits Trust (Trust) is pleased to confirm that the sale of the Trust's equity interest in Chrysler Group LLC to Fiat North America LLC is complete. In a series of transactions, the Trust will receive a total of $4.35 billion in proceeds, of which $3.825 billion was received today. These proceeds will be used to provide additional funding security for the health benefits for UAW Chrysler retirees and dependents.
"We reached a successful conclusion that will benefit the Trust's retirees," said Robert Naftaly, chair of the Committee that governs the Trust. "This was always our goal. As a result, the Trust is stronger."
The UAW Retiree Medical Benefits Trust is the largest non-governmental purchaser of retiree health care benefits in the United States, providing health care benefits to over 777,000 UAW retirees and dependents from General Motors, Ford and Chrysler. UAW-represented Chrysler retirees, surviving spouses and dependents, number 117,000; in addition, the Trust will provide post-retirement benefits to eligible UAW-represented Chrysler employees and their dependents upon their retirement.
SOURCE UAW Retiree Medical Benefits Trust