Advertisement
News
Advertisement

GM To Offer 42K Retirees One-Time Buyouts

Mon, 06/04/2012 - 9:52am

THE CHANGE: General Motors Co. will offer one-time buyouts to 42,000 U.S. white-collar retirees. For another 76,000, it will buy a group annuity that will make monthly payments to retirees.

THE SAVINGS: The moves will cut GM's pension obligation for those retirees from $36 billion to around $10 billion.

THE TREND: Taking that pension liability off its books puts GM on course with companies finding new ways to cut the risk and costs of their defined-benefit pension plans. GM wouldn't say whether moves are in the works for the much larger plan that covers about 400,000 blue-collar retirees and their spouses.

Advertisement

Share This Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading