DOL Seeks Exemption For Chrysler Health Care Plan

The Labor Department is trying to facilitate Chrysler's move under bankruptcy proceedings to transfer company securities into a new retiree health care trust.

To help the beleaguered automaker carry out its plan, the department is seeking an exemption for Chrysler from provisions of a federal law prohibiting such benefit plans from holding large assets in the form of employer securities. The health care trust would cover 120,000 Chrysler retirees and dependents.

Under the bankruptcy arrangement, the United Auto Workers union is getting a 55 percent stake in the new Chrysler, which will be used to fund its retiree health care obligations.