History and Purpose of asrTrust

In summary, the creation of the health care trust funds at GM and Chrysler was mandated by the federal and Ontario governments as a condition for their extraordinary financial support of the 2009 restructuring of both companies.

Without government support, both companies would have collapsed. Along with the complete loss of all retiree health benefits, retirees would have also faced the possible loss of much of their monthly pensions.

Undoubtedly, this would have had a devastating impact on thousands of retired workers and their families. The trust fund model for retiree benefits is not perfect; retirees face new risks, since the level of future benefits will depend on investment returns, life expectancy, and other costs. But the current situation is certainly better than the alternative - the bankruptcy of both companies and the loss of all retiree health benefits entirely.