By Paula Aven Gladych
Thirty percent of eligible General Motors retirees accepted a lump sum payment in lieu of ongoing pension
benefits, according to the company’s most recent 8-K filing with the U.S. Securities and Exchange Commission.
It also announced that it expects to close in early November a transaction through which The Prudential Insurance Company of America will assume responsibility for pension obligations covering GM’s remaining eligible U.S. salaried retirees.
and lump sum payments, GM will have eliminated $29 billion in U.S. salaried pension liability, which was much higher than the initial $26 billion estimate. As part of these transactions, the auto maker will contribute $2.6 billion to its pension plan and will record an estimated $2.9 billion pre-tax charge in the fourth quarter as a special item.
Originally published on BenefitsPro.com