General Motors Co.'s U.S. pension plans have some $8 billion in combined unfunded liability, Daniel F. Akerson, chairman and CEO, told shareholders Tuesday at the Detroit-based company's first annual meeting since its initial public offering last year.
“We're trying to fund our pensions,” Mr. Akerson said. “When the new GM exited from bankruptcy (in 2009), we had roughly $17 (billion) to $18 billion (in) unfunded pension liability in the U.S. alone. We've cut that by almost half since the end of 2009, and I think this is on us regardless of the government's involvement with the company longer term, how long that might be or not be. It's imperative this management team assumes that responsibility, that we do over time fully fund our pension liability.”
Following the meeting, Mr. Akerson told a group of news reporters the U.S. plans were roughly 90% funded as a result of investment performance and contributions in late 2010 and early 2011 of cash and stock, said Renee J. Rashid-Merem, GM spokeswoman.
As of Dec. 31, GM's U.S. plans had a combined $91 billion in assets and $103.3 billion in liabilities and its non-U.S. plans had $14.9 billion in assets and $24.7 billion in liabilities, according to its 10-K.