General Motors Co., Detroit, plans to use about $600 million from the proceeds of a sale of bond notes to prefund mandatory contributions to its Canadian and U.K. pension plans, according to an 8-K filing with the Securities and Exchange Commission.
The mandatory contributions are due in 2019 through 2021.
As of Dec. 31, GM's non-U.S. unfunded pension obligation was $8.3 billion, a GM spokeswoman confirmed. She said the company doesn't break out specific amounts by country.
In addition to the proceeds from GM's current debt offering, the spokeswoman said the firm expects to contribute approximately $1.2 billion to its non-U.S. pension plans in 2018. This includes $300 million in payments of pension obligations for separated employees in Korea.
According to GM's 10-K filed with the SEC in February, its non-U.S. pension plan assets as of Dec. 31 totaled $14.5 billion, compared to projected benefit obligations of $22.79 billion, for a funding ratio of 63.6%.