GM to Shift White-Collar Pensions to Annuity
June 16, 2012 by Tom Krisher
Will more companies follow suit?
June 4, 2012 •
DETROIT (AP)—General Motors Co. will change the way it makes pension payments to white-collar retirees, shoring up its finances by offering buyouts and shifting liabilities to an annuity.
The moves will unload $26 billion in pension liabilities from the Detroit automaker’s books, and experts say the changes are likely the start of a trend as companies with defined benefit pension plans try to cut risk and administrative costs.
GM said Friday that it will offer 42,000 retirees a lump-sum of cash if they agree to stop taking monthly benefits. Click here to read more…