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 Detroit company announced on Friday that it will offer 42,000 retirees a lump-sum of cash if they agree to stop taking monthly benefits. For the rest of the 118,000 U.S. salaried retirees and spouses, GM will buy a group annuity that will make monthly payments starting in 2013.
The Prudential Insurance Co. will handle the annuity and pay the benefits. The amounts of the monthly pension payments will not change.
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