« Thrift Savings Plan (TSP) Options At Retirement | Main | Questions On The 1099-R »

GM Moves From Pension To 401k

General Motors Co. plans to freeze its U.S. pension plan for longtime white-collar workers and give all salaried employees annual bonuses but not pay raises in an effort to hold down expenses, officials announced Wednesday.

The Detroit-based automaker said roughly 19,000 salaried workers hired before 2001 will move from a traditional pension with guaranteed payments to a 401(k)-type plan with contributions based on salary and bonuses. Employees hired after 2001, which represent about 30 percent of the company’s salaried workforce, already are in that defined contribution plan.

Posted on Wednesday, February 15 by Registered CommenterWise Owl | Comments Off