GM reducing pension burden further with lump sum buyouts

General Motors is moving to reduce the company's pension costs by $26 billion. The automaker is offering around 42,000 of its salaried retirees and surviving beneficiaries a one-time lump-sum payment in lieu of their current monthly benefit. In addition, GM plans to shift its salaried pensions to Prudential Insurance Co. of America. All told, the move will cost the manufacturer between $3.5 billion and $4.5 billion, including funding the plan and purchasing an annuity contract from Prudential.

Autoblog, GM reducing pension burden further with lump sum buyouts