GM: No pension contributions coming for next 5 years
By Kevin Olsen | February 14, 2013 4:03 pm
General Motors Co., Detroit, does not expect to make any mandatory pension contributions for the next five years, according to its fourth-quarter earnings statement.
GM completed its annuity purchase with Prudential Insurance Co. of America in the fourth quarter, resulting in $28 billion in reduced pension liabilities, or 25% reduction.
The U.S. pension plans were about 84% funded with $13.1 billion in unfunded liabilities at the end of 2012, said Daniel Ackerson, chairman and CEO, according to a transcript of the earnings call.
“We'll continue to look at opportunities to further derisk, for sure. It's our goal to further derisk as we move along,” said Daniel Ammann, senior vice president and CFO, according to the transcript. “And if something compelling comes along, we'll act on it. But I think what we're really signaling is because of the actions we've taken, we feel like we've made a lot of progress and we're in a position where we have a fair amount of flexibility, but we will still act if something interesting comes along.”