Meridian GenCorp retiree benefit agreement approved

By Caroline Salls

Pittsburgh, June 26 - Meridian Automotive Systems Inc. obtained court approval of an agreement with various unions at its former GenCorp operations in Ionia, Mich., that modifies retiree benefits, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the agreement, retirees will pay 20% for basic medical, prescription drug and dental coverage and the company will pay 80%.

Medicare eligible retirees will continue to have company reimbursement of monthly Medicare part B premiums and existing life insurance coverage.

However, in exchange, the Medicare part B payment cannot exceed $175 per month.

The company said it expects to save $11,000 per year from the Ionia operation modified retiree benefits.

Meridian, a Dearborn, Mich., supplier of lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers, filed for bankruptcy on April 26, 2005. Its Chapter 11 case number is 05-11168.

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