Filed Under:Markets, Company News

GM to Shift White-Collar Pensions to Annuity

Will more companies follow suit?

AP Photo: Paul Sancya
AP Photo: Paul Sancya

DETROIT (AP)—General Motors Co. will change the way it makes pension payments to white-collar retirees, shoring up its finances by offering buyouts and shifting liabilities to an annuity.

The moves will unload $26 billion in pension liabilities from the Detroit automaker’s books, and experts say the changes are likely the start of a trend as companies with defined benefit pension plans try to cut risk and administrative costs.

Copyright 2016 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Nichole Morford

Nichole Morford
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