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UAW healthcare trust expected to net $1.78 billion from auction

Detroit Free Press, April 1, 2010
Ford announced that the UAW's retiree healthcare trust is expected to raise $1.78 billion through an auction of stock warrants. The UAW's Retiree Medical Benefits Trust received the warrants last year as part of a funding agreement with Ford. Ford and the UAW agreed to establish the trust, also called a voluntary employee beneficiary association, or VEBA, in 2007 as a way for Ford to move billions in future retiree healthcare liabilities off its books and to allow the UAW to manage retiree healthcare. The decision to sell all of the warrants was made by Independent Fiduciary Services, an independent investment advisory firm. "The net proceeds are intended to help diversify the trust's overall investment program and support payment of benefits to its nearly 200,000 participants and beneficiaries associated with Ford," Independent Fiduciary Services said in a statement.