GM announces changes to salaried pension plans - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |

GM announces changes to salaried pension plans

Updated:
DETROIT (AP) _ General Motors Corp. said Tuesday that it will shift its pension benefits for salaried employees from a defined benefit plan to a plan that relies more heavily on employee contributions.

Effective Jan. 1, GM will freeze the accrued pension benefits for U.S. salaries employees. Salaried employees hired on or after that date will move exclusively to a defined contribution plan, and GM will contribute a certain amount to their 401(k). Salaried employees hired before Jan. 1 will remain in a defined benefit plan but will get reduced benefits under a new formula.

GM announced last month that it would make the change to reduce its pension costs. The changes are expected to reduce GM's year-end 2006 pension liability by approximately $1.6 billion.

``These changes will reduce financial risks and future costs for GM, while protecting current retirees' and employees' earned pension benefits and providing competitive and fair retirement benefits going forward,'' GM Chairman and CEO Rick Wagoner said in a statement.
Powered by Frankly
News On 6
303 N. Boston Ave.
Tulsa, OK 74103
Newson6.com is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state.
All content © Copyright 2000 - 2017 KOTV. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.