According to The Detroit Free Press, starting in July, any of Ford’s 25,000 eligible salaried workers who decide to retire can opt to take their total pension as one payment, rather than the traditional practice of receiving an annuity.
Spokesman Todd Nissen said it is too early to gauge how popular the offer will be or how much impact it will have on the bottom line as the company looks to reduce its pension obligations, reports The Detroit Free Press.
The article states that Ford plans to contribute $3.5 billion to its underfunded pension this year. Globally, the pension fund was underfunded by $15.4 billion at the end of 2011, and in the U.S. was $9.4 billion short. The automaker said it plans to have the pension fully funded in the next several years.
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