Check Out The Size Of The Chrysler Group's Package!

That's right, the Chrysler Group's just announced severance packages and buyout terms that make up the Chrysler Group Recovery and Transformation Plan (or, feel free to use the not-at-all-awkward acronym of CGRTP, if you prefer). The 'merican side of the German-American hybrid's looking to reach their target of a reduction of 2,000 salaried positions by 2008 by offering these packages to and incentive programs for non-bargaining units (i.e. salaried employees, white collar workers, folks who work in the Tech Center or whatever you want to call them). Check out the size of the packages below the jump.

Special Early Retirement (SER)

* Eligibility - All NBU salaried employees, age 53 to 61 with 10 or more years of service, with earnings in 2006 of less than $100,000 and select NBU salaried employees, age 55 to 61 with 10 or more years of service with 2006 earnings of $100,000 or greater.
o This is in compliance with IRS guidelines.
o Eligibility requirements must be satisfied by June 30, 2007.

* Program Terms:
o Offers will be made to select employees June 4, 2007, and returned by June 29, 2007.
o Retirements effective June 30, 2007.
o Retirement benefits will not be reduced by an early retirement reduction percent.
o 100% Retiree Choice medical credits through age 64 and at age 65 100% credits in the Health Care Retirement Account. Ordinarily, an employee must be age 60 with 30 years of service to receive 100%.

Separation Incentive Program (SIP)

* Eligibility - All NBU salaried employees age 62+ with 10 or more years of service as of May 31, 2007.

* Program Terms:
o Offers made May 7, 2007 and returned by May 31, 2007
o Retirements effective May 31, 2007.
o Program incentives include 3 months salary and either a $20,000 car voucher grossed up for taxes, or a $20,000 contribution to the Retirement Health Care Account.
o 100% Retiree Choice medical credits through age 64 and at age 65 100% Credits in the Health Care Retirement Account. Ordinarily, an employee must be age 60 with 30 years of service to receive 100%.

Similar programs are being finalized for the salaried bargaining-unit (SBU) workforce, which is represented by unions.


Related:
You Better Shop Around: Chrysler Group Shopped To Private Equity Firms; Not So Many Briefcases Left: Does Dr. Z Really Want To Make A Deal On Chrysler? [internal]