A federal court in the United States has turned down an appeal by former executives at General Motors over cuts to their pension.
The automaker was required to slash executive pensions that were more than US$100,000 annually by two-thirds as a condition of a government bailout.
The calculation of the executive retirement plan (ERP) reduction was the source of controversy in the suit.
The former executives argued that GM misquoted terms of its ERP and the company should not have included benefits from a separate salaried retirement program.
In its ruling, the U.S. Court of Appeals states that what retirees don’t show “is how a slight misquoting of the provision affects either the quality of review given to their claims or their entitlement to benefits.”
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