The meetings, which started today and will continue for two weeks, are meant to provide the Detroit-based automaker's 42,000 retirees who have the option of taking a lump-sum instead of monthly payments more information and face-to-face access to ask officials questions, according to GM spokesman Dave Roman.
View full sizeGeneral Motors Co. plans to hold 100 informational meetings across the country regarding pension options for some white-collar retirees, a company spokesman confirmed today.DETROIT, MI- General Motors Co. plans to hold about 100 informational meetings across the country regarding pension options for some white-collar retirees, a company spokesman confirmed today.
The meetings, which started today and will continue for two weeks, are meant to provide the Detroit-based automaker’s 42,000 retirees who have the option of taking a lump-sum instead of monthly payments more information and face-to-face access to ask officials questions, according to GM spokesman Dave Roman.
A person informed on one of the sessions that occurred today said a lot of the information is a review of the options each retiree has, but officials are open to answering any questions from retirees.
Roman said the meetings are occurring in cities that have a high population of retirees. He said the retirees have exact details about the meetings in their offering packets, which were mailed out last week.
GM announced the voluntary lump-sum offering June 1. GM said the move is expected to cut its pension obligation by $26 billion.
GM plans to purchase a group annuity contract from the Prudential Insurance Company of America, a Prudential Financial, Inc. company. GM will pay about $4 billion in cash into the pension plan and then pay $29 billion to Prudential, according to officials.
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 2012, 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.
Salaried retirees eligible for the lump-sum payment have until July 20 to make a decision on their payment options.
Analysts have continued to tell MLive.com that there are certain things each retiree should do before making a decision about the offer from GM.
In February, GM also announced it would eliminate traditional pensions for its 26,000 current salaried U.S. workers. The changes included terminating all traditional pensions and moving to a 401(k)-type retirement fund, an extra week of vacation time and performance-based bonuses instead of "across the board pay raises."