General Motors Co., Detroit, lowered its assumed annual expected return on its U.S. pension plan investments to a weighted average 6.2% from 8%, according to the company's 10-K report, released Monday.
GM had $94.3 billion in U.S. pension assets and $14.5 billion in non-U.S. pension assets as of Dec. 31, the report said.
It lowered the rate to 5.7% for its $33 billion in U.S. salaried pension plan assets and to 6.5% for its $61.2 billion in U.S. hourly pension plan assets. The rate for both plans was 8%.
“The overall decrease is primarily due to a different asset mix consisting of a higher proportion of fixed-income investments compared to last year,” the report said. “The salaried pension plan has a higher target proportion of fixed-income investments than the hourly pension plan and therefore, a lower expected return on assets than the hourly pension plan.”
GM lowered its discount rate for its U.S. plans to 4.15% from 4.96%, the report said.
GM's combined U.S. pension assets returned 11.1% on investments last year, as reported by P&I Daily on Feb. 16.