DETROIT (WXYZ) - General Motors Co. announced Friday that it will provide select U.S. salaried retirees a lump-sum payment offer. Other retirees will be offered a continued monthly pension payment securely administered and paid by the Prudential Insurance Company of America.
The retirement plan actions will result in an expected $26 billion reduction of GM’s U.S. salaried pension obligation.
Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to receive a voluntary single lump-sum payment option. The transactions are expected to be completed by the end of 2012, following completion of regulatory review. Prudential would then assume responsibility for the benefits covered by the agreement and begin making the benefit payments in January 2013.
"We appreciate the contributions our retirees have made to the company and we have taken great care in ensuring the security of their retirement benefits,” said Cindy Brinkley, GM vice president of global human resources.
Approximately 118,000 U.S. salaried retirees are impacted by these changes in different ways, depending on retirement date and eligibility. Salaried retirees eligible for the lump-sum payment will have until July 20, 2012 to make a decision on their payment options.
GM will be mailing detailed information to the affected retirees and conducting meetings to explain the options so they can make an informed choice.
CLICK HERE for additional information from the GM retiree website.
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