Information about http://www.gm.com/corporate/employees/retirees/pdf/Retiree+Letter.pdf

July 2008 Dear Salaried Retiree or Surviving Spouse: Since the first…

Tags: automotive industry, dependents, difficult decision, economic conditions, general motors, health care costs, health care coverage, health care plan, health care program, january 1, managing your health care, medicare, medicare health, medigap, new health care, pension increase, personal attention, rapid change, retiree health care, s market,
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Language: english
Created: Mon Aug 4 15:58:10 2008
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July 2008

Dear Salaried Retiree or Surviving Spouse:

Since the first of this year, U.S. market and economic conditions have become
significantly more difficult. These conditions, along with the rapid change in automotive
industry sales mix, require us to take further actions that will position GM for sustainable
profitability and growth. As a result, GM is announcing a change to the General Motors
Salaried Health Care Program.

Effective January 1, 2009, GM is canceling health care coverage for salaried retirees and
their dependents age 65 or older. Instead, eligible salaried retirees and surviving spouses
over age 65 will receive a monthly pension increase of $300. This pension increase is
designed to help offset some of your health care costs in retirement.

Eligible salaried retirees, surviving spouses and their dependents, who are pre-age 65,
may continue to participate in the General Motors Salaried Health Care Program until
they turn age 65. This Program remains subject to the Salaried Retiree Health Care Cap
that became effective January 1, 2007.

You will receive additional information about the change to the General Motors Salaried
Health Care Program in the months ahead. In addition, beginning in October, GM will
contract with a company called Extend Health to help you learn more about individual
Medicare health care plans such as Medigap or Medicare Advantage that are available in
the marketplace. Attached is a list of questions and answers to help clarify the changes.
We recognize that this change will require more of your personal attention in managing
your health care in retirement. Extend Health will support your needs during this time by
helping you to enroll in a new health care plan.

This is a very difficult decision for the Company to make; however, it is necessary to take
this action given today's economic conditions. As hard as this action is, we are doing
what is necessary to position GM for future success. We ask for your understanding and
continued support.

Sincerely,



Kathleen S. Barclay
Vice President
Global Human Resources