In another blow to the implied social contract between big business and the older workers and retirees who made them big, yesterday the beleaguered General Motors announced it was eliminating medical benefits for its thousands of white-collar retirees.

General Motors Corp’s announcement on Tuesday to eliminate retiree medical benefits for salaried workers was a big red flag to the rest of the U.S. work force: More companies may follow GM’s footsteps and drop retirement health plans as a way to boost their bottom lines.

GM’s plan to cease medical coverage for its salaried retirees age 65 and above is one of the many cost-cutting moves that the company hopes will help them raise $15 billion – enough to keep the company afloat as rumors linger that the company is facing bankruptcy, USA Today reports.

The change, which will take effect in January 2009, affects 197,400 existing salaried retirees and their spouses, who have already seen reductions in their healthcare coverage going back to 2007.

According to today’s Wall Street Journal, “GM isn’t the first company to do this, but its heft and influence could help usher in further cutbacks at other companies.”

Now, workers planning to retire early might consider working at least part-time to keep active employee health coverage until they’re eligible for Medicare at age 65, reports the Journal.

In March, the Supreme Court made it easier for companies such as GM to reduce health benefits for millions of retirees who turn 65 and become eligible for Medicare by turning away a legal challenge from AARP.

The Detroit Free Press interviewed one of the thousands of shell-shocked GM retirees who are questioning what’s to come.

"I’m disappointed in the lifetime promise GM made to us," said John Fleming, 67, of Rochester Hills, a retired information system auditor. "We’ve been wiped off the books completely."

Tell us: Are you worried about your retirement plans?