DAYTON, Ohio (WDTN) - Major changes were announced Friday for General Motors pensions.
The automaker announced plans that will affect more than 118,000 white-collar retirees.
The company will offer some of the retirees a lump-sum of cash payout if they stop taking monthly benefits.
This will cut GM's pension obligation by $26-billion.
The company says those who choose not to take the lump sum will have two options:
- Opt for a new annuity based on marital status
- or just continue on the current plan, which would be paid by Prudential Insurance Company beginning in 2013.
A GM official spoke to 2 NEWS via satellite Friday afternoon about what this means for the autoworkers.
"This is a very personal choice and the company's not advocating either way whether or not a retiree should take the lump sum offer. Something that we are doing is providing education on this. Retirees will be receiving packets in the mail very very soon that gives them a lot of information on what to do," said Cindy Brinkley, GM/VP, Global Human Resources.
You can also log on to the GM retirees' website for more information.
Shares of Detroit's General Motors Company jumped 3-percent after the change was announced.
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