DETROIT -- General Motors Co. said today that it will offer a lump-sum pension buyout to one-third of its U.S. retirees and shift the remaining retirees to a group annuity run by an outside administrator.
GM, in a statement, said the moves should reduce its U.S. pension liability by about $26 billion, a major step in its bid to reduce the $134 billion pension obligation on its books, which GM says is the largest pension liability for any U.S. corporation.
About 42,000 of GM's salaried retirees and their dependants -- those who retired between Oct. 1, 1997, and Dec. 1, 2011 -- are eligible for the buyout.
Those who retired before Oct. 1, 1997, as well as any of the 42,000 who decline the buyout offer, will have their benefits paid by Prudential Insurance Co. of America starting in January. The amount of the monthly checks would remain the same.