GM Plans To Freeze Salaried Workers’ Pensions
The production line at the General Motors assembly plant in Arlington, Texas. (Photo credit General Motors)
DETROIT (CBSDFW.COM/AP) – General Motors Co. (GM) 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.
The changes take effect October 1.
One of General Motors largest plants is in Arlington, where more than 2,400 employees are a part of the production of Chevrolet Tahoes and Suburbans, GMC Yukons and Cadillac Escalades.
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