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Thursday, October 11, 2012

Kodak Asks Court To End Retiree Medical Benefits

Eastman Kodak Co. said Wednesday it has asked a bankruptcy court judge to allow it to end retiree medical and some other benefits at the end of the year as part of its restructuring.

The company said it reached an agreement with the court-appointed committee of retirees to pay a total of $650 million in claims and $7.5 million in cash into a fund that could be used for future payments in exchange for eliminating its current $1.2 billion liability for medical, dental, life insurance and survivor income benefits.

A company spokesman said pensions would not be affected.



Anonymous said...

"Pensions will not be affected" is an absurd comment.Medical benefits are a huge part of anyones retirement.

lmclain said...

EVERYONE is running out of real money. International banks keep shuffling money around and loaning it back and forth in order to make their balance sheets look solvent. This is not the first company (or municipality) to say "yeah we made those promises, and our workers DID expect that retirement and medical package, but hey, we have to choose--- CEO stock options and lifetime payments or worker security. The workers just have to suck it up". The CEO? He's buying another Hawaiian vacation home and cashing in some stock. Its only the beginning for American retirees. Wait til our government starts working on their Medicare and Social Security benefits. Thank God Congress has exempted themselves from all these painful reductions. At least the ruling elite won't have to suffer. I know I feel better about that...