General Motors Co., Detroit, on Sept. 30 will freeze the defined benefit pension plans of all salaried workers hired before 2001, said Lynda Messina, communications manager.
Effective Oct. 1, those salaried workers will be moved to an existing 401(k) plan for salaried employees.
In place of the DB contribution, GM plans to contribute 6% of base pay and bonus for the salaried employees hired before Jan. 1, 1993, and 4% for the other salaried employees, said Preston Crabill, director of employee benefits.
The salaried employees already participating in the 401(k) plan receive a GM matching contribution of up to 4% of pay.
As of Sept. 30, GM’s U.S. salaried DB plan had $32.8 billion in assets and $34.1 billion in liabilities, while its U.S. hourly DB plan had $60.2 billion in assets and $68.8 billion in liabilities, Mr. Crabill said.
The hourly DB plan is unchanged.
Mr. Crabill said he didn’t have information immediately available on the total asset value of the existing 401(k), or how many of the affected salaried employees participate in it. Pensions & Investments estimates GM had $14 billion in 401(k) assets as of Sept. 30.