DETROIT, Oct 15 (Reuters) - General Motors Corp on Monday said it would shift billion from an existing trust fund to a new trust being established to take over a -billion obligation to pay for health care for some 270,000 union-represented retirees.
In a presentation for financial analysts, the No. 1 U.S.
automaker said it would transfer the funds from a trust established as part of a 2005 deal with the UAW for the new Voluntary Employees Beneficiary Association trust it agreed to form with the United Auto Workers union as part of just-ratified contract.
It was the first time GM had detailed its agreed funding for the new VEBA. Financial analysts have said that a provision allowing GM to shift the billion in existing assets to the new plan would produce larger cash savings for the automaker as it restructured.
(Reporting by Jui Chakravorty and Kevin Krolicki, editing by Gerald E. McCormick) REUTERS SI PM2020