August 9, 2006 in Business

GM’s pension obligations fall

Associated Press The Spokesman-Review
 

DETROIT — General Motors Corp. has reduced its projected employee pension obligation by $3.9 billion, or about 4.4 percent, because 34,400 hourly workers took early retirement or buyout offers and because of reduced benefits for white-collar workers, the company said Tuesday.

At the end of last year, GM’s projected pension obligation was $89 billion. In a statement filed with the Securities and Exchange Commission, GM said Tuesday that has been reduced to about $85 billion due to the changes, which took place in the first and second quarters of this year.

GM, like its domestic counterparts, is trying to reduce its pension and health care costs to match foreign automakers, which generally have a younger work force.


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