UAW Seeks Permission to Finance Retiree Health Benefit Payments

The United Auto Workers union has sought federal regulators’ approval to finance more than $134 million it owes to the retiree health plan that covers employees of the union.

The major trade union and locals representing UAW workers and retirees negotiated a proposed 15-year financing agreement that the US Labor Department will have to approve.

The DOL must sign off on the financing agreement because the proposed collateral would amount to prohibited transactions under the Employee Retirement Income Security Act of 1974 (Pub. L. No. 93-406), which governs private-sector health, welfare, and retirement benefits.

Under the terms of ...