Bloomberg News

GM Moves 19,000 U.S. Salaried Workers to 401(k) From Pensions

February 17, 2012

Feb. 15 (Bloomberg) -- General Motors Co., which regained the global auto sales lead last year, said it’s moving almost three-quarter of its U.S. salaried workers from a pension plan with defined benefits to defined contributions.

Pension benefits earned under the old system for employees hired before 2001 will stop accruing on Sept. 30, Cindy Brinkley, vice president of global human resources, said in a conference call with reporters.

“They are going to keep all of their pension benefits that they already earned,” she said. “In October, GM will start making new contributions into the retirement-savings plan.”

The changes don’t affect the salaried workers hired in or since 2001 who were already in defined-contribution plans, Brinkley said. “Nothing is going to change for them,” she said.

The Detroit-based automaker also said it’s giving its 26,000 salaried workers an additional week of vacation. U.S. salaried workers won’t get across-the-board salary increases this year while the automaker offers bonuses, Brinkley said.

To contact the reporter on this story: Tim Higgins in Southfield, Michigan at thiggins21@bloomberg.net

To contact the editor responsible for this story: Bill Koenig at wkoenig@bloomberg.net


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