June 1, 2012 (PLANSPONSOR.com) - General Motors Co. will offer lump-sum payments to select U.S. salaried retirees.
Other retirees will receive a continued monthly pension payment administered and paid by The Prudential Insurance Company of America.
Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to receive a voluntary single lump-sum payment option. GM plans to purchase a group annuity contract from Prudential under which Prudential will pay and administer future benefit payments to most of the remaining U.S. salaried retirees.
The transactions are expected to be completed by the end of this year, 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.
The retirement plan actions will result in an expected $26 billion reduction of GM’s U.S. salaried pension obligation.