General Motors to Provide Lump-Sum Pension Payments for Some
General Motors announced this afternoon that it will offer select salaried retirees a lump-sum payment offer, and will outsource retirees’ pension administration to the Prudential Insurance Company of America.
GM says the moves will reduce its US salaried pension obligation by about $26 billion.
Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to receive a voluntary single lump-sum payment option, GM said, according to Nasdaq.
Prudential is expected to assume responsibility for benefit payments in January of 2013.
The changes will affect about 118,000 US salaried retirees, and will have no effect on hourly retirees.