Detroit Bureau on Twitter

Posts Tagged ‘gm pensions’

GM Offering Lump-Sum Buyouts to 42,000 White-Collar Retirees

COO hints similar offer could follow for union workers.

by on Jun.01, 2012

GM CFO Dan Anmann wants the maker to focus on its "core business."

Taking a cue from its cross-town rival, General Motors will offer lump-sum buyouts to 42,000 salaried retirees while transferring the pension program of the rest of its 118,000 white-collar retirees to Prudential Insurance.

Those moves should reduce GM’s pension liabilities by about $26 billion without reducing benefits, Chief Financial Officer Dan Ammann explained during a conference call with analysts and reports.  And it could serve as a model for a similar program aimed at reducing GM’s even bigger blue-collar pension liabilities which remain significantly underfunded.

Keep Up!

“We’re going to continue to look for opportunities down the road,” said the GM CFO, though he declined to discuss whether the prospect of major changes to the pension program of hourly workers has yet been raised with the United Auto Workers Union.


GM Slashes Another $4 Bil In Debt

Maker moves to cover under-funded pension programs.

by on Dec.02, 2010

GM moving to put its financial house in order, says CFO Liddell.

General Motors Company has contributed $4 billion to its long-underfunded hourly and salaried pension plans in the United States.
Chris Liddell, GM vice chairman and chief financial officer, said $2.7 billion was contributed to the hourly plan and another $1.3 billion to the salaried plan.

The $4 billion contribution was another step towards putting the company’s financial house in order. GM’s U.S. pension plans currently provide benefits to approximately 688,000 participants, said Liddell.

“This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt. With a healthy balance sheet, a lower cost structure and focus on revenue generation, we continue to put in place the fundamentals for sustainable success,” Liddell said.

Your Trusted Source! Click Here to Subscribe!

All of the company’s U.S. pension plans were, as of December 31, 2009 underfunded in total by $17.1 billion.  The company will next re-measure its U.S. pension plans at year end 2010 and their funded status will be included in the 2010 Form 10-K.

The pension liabilities were one of the key debts that remained after GM completed its bankruptcy, last year.