How safe is your GM pension? -- Susan Tompor, DetFP columnist

[Bozita]

http://www.freep.com/article/20090602/COL07/906020453/How+safe+is+your+GM+pension?

How safe is your GM pension?
BY SUSAN TOMPOR • FREE PRESS COLUMNIST • JUNE 2, 2009

QUESTION: What happens to my pension? Or more precisely for some, my father's pension?

ANSWER: It's not a small question; General Motors Corp. has 493,000 U.S. hourly and salaried retirees and surviving spouses.

The good news now is that GM is not terminating its pension plan.

GM said the company does not expect any immediate changes to the qualified pension plans and health and life insurance benefits that GM provides to retirees, survivors and beneficiaries.

Q: Does this mean no retirees will see any cuts?

A: No -- everyone is not safe.

On the plus side, qualified plans are safe. GM noted that assets in qualified pension plans are protected from the claims of creditors. The GM Hourly-Rate Employees Pension Plan and GM Retirement Program for Salaried Employees are qualified retirement programs.

However, some executive retirees could see cuts based on money they're receiving from non-qualified plans.

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[Auggie]

1. Thanks for posting