GM to move all salaried workers to 401(k) plans [View all]

[TBF]

This was posted in Late Breaking News, but I'd like to keep a copy of these types of posts in our group as well. Many corporations have done away with pension plans in favor of 401ks (with the exception of places like law firms which will offer 401K on top of their pensions). A troubling development that folks are being left to their own devices trying to manage 401ks while owners continue to target Social Security:


GM to move all salaried workers to 401(k) plans

By Bryce G. Hoffman
The Detroit News
February 15, 2012 at 9:27 pm

General Motors has the largest pension obligation of any company in the United States, and the automaker had been hinting for months that it needed to do something to reduce the risk that liability posed to its financial strength.

General Motors Co. is ending traditional pensions for its longtime U.S. salaried employees, but the automaker is softening the blow by giving all salaried workers an extra week of vacation.

All of the company's approximately 26,000 white-collar workers in the United States will now get defined contribution, or 401(k) plans, instead.

Those workers hired after Jan. 1, 2001, were already getting 401(k) plans instead of traditional pensions. Workers hired before that date will not lose the pension benefits they have already accrued, the automaker said.

GM said all U.S. salaried employees will also be getting bonuses tied GM's global performance, though details will not be released until Thursday.

GM also said it will give pay increases to workers with critical skills this year, but said there would be no across-the-board raises...

More here: http://www.detroitnews.com/article/20120215/AUTO0103/202150397/GM-move-all-salaried-workers-401-k-plans?odyssey=tab