General Motors Corp., New York, is considering asset allocation changes to its $89.7 billion pension plan, said W. Allen Reed, president and CEO of General Motors Asset Management, which manages GM's pension plans. The proposed changes are: U.S. equities to 24% to 28%, from the current 29% to 33%; real estate to 8% to 12%, from 7% to 11%; and alternatives to 9% to 13%, from 6% to 8%. Foreign equities will be unchanged at 17% to 21%, and global bonds will remain at 32% to 36%. The plan wants to reduce volatility and allow for more diversification. No timetable was given for the changes, but no action will be taken until the company contributes $4.1 billion to the plan, expected by year's end.
John Devine, CFO, said today in a conference call that GM's pension plan will be fully funded by the end of this year.
