More than 10,000 retirees from auto suppliers in Michigan, Ohio and Wisconsin whose pension plans were abandoned by their employers can join a new health care trust that will qualify for a hefty government subsidy. The Voluntary Employee Beneficiary Association or VEBA will offer group health, prescription drug, dental and vision care benefits. It will be open to retirees — age 55 or older, but not yet 65 and eligible for Medicare — from Delphi, Collins & Aikman, Hayes Lemmerz International, Meridian Automotive Systems and Plastech Exterior Systems.
Participants in the Auto VEBA Trust will be eligible for a 72.5 percent federal subsidy. The U.S. Bankruptcy Court in New York overseeing the remnants of Metaldyne Corp. approved the VEBA plan on Monday. Most of the company emerged from bankruptcy in 2009 as Metaldyne LLC.
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