The U.S. District Court in Detroit gives the nod to the proposed health-care deal between General Motors Corp. and the United Auto Workers union, clearing the way for the auto maker to begin rolling out the cost-cutting plan.

GM says full implementation of the plan, which reduces health-care benefits for retired hourly workers, should be completed by June 1.

GM says the program will cut its retiree health-care liabilities by about $15 billion, or 25%, and trim its annual employee health-care costs by about $3 billion before taxes. Cash saving are projected at about $1 billion per year.

The plan had been brought before the court on behalf of the retirees in order to eliminate grounds for any legal challenges after its implementation.