General Motors CEO Dan Akerson said the company may offer buyouts to United Autos Workers members before it negotiates a new contract in 2015.

"We can bring it up," Akerson said Tuesday before GM's annual meeting, according to The New York Times. "I'm not saying we're going to do it, but it's something we could look at if the opportunity should arise."

Roughly 42,000 of GM's 118,000 retirees or eligible spouses could opt for a one-time payment instead of a traditional pension. A similar offer was made to white collar retirees who retired between 1997 and 2011. That group has until July 20 to accept or decline it.

GM hopes the offers help reduce its $134 billion pension obligation by about $26 billion, according to The New York Times. That savings could help considerably – the company's current pension obligation is underfunded by $25 billion.

UAW President Bob King did not respond to inquires by The New York Times.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 36 Comments
      NAIF S
      • 2 Years Ago
      The real truth of why GM was failing is in an article in the WSJ on June 12 2012. Titled, "GM's chief labors to get rebuilt car maker into gear". Page 1.
        BranMM
        • 2 Years Ago
        @NAIF S
        And you believe an article from the Wall Street Journal? Stupidity is beoming pandemic in this country.
          • 2 Years Ago
          @BranMM
          [blocked]
      • 2 Years Ago
      [blocked]
        Ryth
        • 2 Years Ago
        It should be. Pensions, unless you pay into them yourself, are just ridiculous to begin with for a company, state, etc to be saddled with. They are agreements that can never be fulfilled and to think they could have been to begin with is ridiculous. That is why we're in the mess we're in for many companies.
      SooooRight
      • 2 Years Ago
      This is something that could have been accomplished if GM would have been allowed to go to bankruptcy instead of The Criminal In Chief Oblameo bailing out the Unions. Unions =bad Buy non-union.
        rlog100
        • 2 Years Ago
        @SooooRight
        The taxpayers would have picked up the tab directly via the PBGC. You can get about 80% of your pension from there if you are fully vetted in your company's pension which most of the UAW already is.
          SloopJohnB
          • 2 Years Ago
          @rlog100
          Maybe, maybe not. Depends on how old you are, etc. http://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee.html
          SloopJohnB
          • 2 Years Ago
          @rlog100
          Maybe, maybe not 80%.
          rlog100
          • 2 Years Ago
          @rlog100
          Nope, that's about right.
      Scr
      • 2 Years Ago
      During the reorganization, they should have taken the pile of cash that is the pension fund and dumped the whole thing on the UAW. 'Here, you take care of it now!" Same with the benefits. The workers don't work for GM, they work for the UAW. Let them deal with the problems. I know there is a lot of animosity towards the UAW among the ranks because the UAW actually owns larger chunks of the automakers and they had to be in on the decisions to downsize and lay people off. What good is your union if they even dump your ass out into the street?
        darkness
        • 2 Years Ago
        @Scr
        My god Scr you cannot be that stupid we do not work for the UAW we work for GM my paystub says GM, good lord the misinformed is alarming.
          darkness
          • 2 Years Ago
          @darkness
          Absolutely stunning how someone can post something that is 100% false, STOP watching Fox News.
          BranMM
          • 2 Years Ago
          @darkness
          Turn off AM radio. It causes stupidity.
          rgkarasiewicz
          • 2 Years Ago
          @darkness
          I wouldn't waste my time listening to any of those shills on TV.
      darkness
      • 2 Years Ago
      Anybody who makes more than me or gets more than me is overpaid because im a jealous little girl hiding in a mans body.
      neonrt
      • 2 Years Ago
      I don't even need to read the comments to know how this is going to go. Red team charges in: "Unions bad! Obama bad! ARRRGGGHHH!!!!!" Blue team responds: "Romney bad! It's all Bush's fault! ARRRRGGGHHH!!!!!!" Have fun with your meaningless blather guys.
      SloopJohnB
      • 2 Years Ago
      While it's generally not financially a good deal to accept a cash payout ILO defined benefit pension, it could work out if you consider the probability of the pension guarantee program with the government paying on average 10% of the pension benefits of high-benefit UAW workers. The UAW would be better off negotiating high matching 401K payments or other lockable benefits.
      pwr2lbs
      • 2 Years Ago
      Read you jack monkeys! I will never own a GM product, end of story. http://blog.heritage.org/2012/06/13/morning-bell-auto-bailout-was-really-just-a-uaw-bailout/
      barbara.raines
      • 2 Years Ago
      What if you could see into the future? What if you could know just how the GM Pension Buyout Plan options would play out for you and your family? If you've read the free white paper at http://gmpensionbuyout.info, you've seen scenario examples. You may not fit those demographics, however, leaving your future views cloudy. This is why GM retirees have been encouraged to seek the professional advice of experienced financial planners. The July 20 decision deadline is almost here – don't guess about your future; let a professional help you make a decision you can be confident about.
      barbara.raines
      • 2 Years Ago
      In about 10 days the GM pension plan buyout decision deadline will be here. Those retirees who have been affected by this decision have been encouraged since the June 1 announcement to consult with an experienced financial planner. This decision is a complicated one; there are many factors to consider including your age, heirs, and income tax bracket. A free white paper is available at http://gmpensionbuyout.info. Even with research, the options are best understood when discussed with a professional. Find out which choice is the right one for you and your loved ones.
      barbara.raines
      • 2 Years Ago
      In the days since General Motors announced their Pension Buyout Plan, retirees have been juggling the available information as you try to decide which option is the right one for you. The problem is, terms like “Present Value” and “default risk” aren't laymen’s terms. With less than a few weeks before the July 20 decision deadline, now is the time to consult an experienced financial planner who can help you understand these complex terms. The advisors at LJPR, LLC (located in Troy, MI) have helped many retirees navigate the waters of pension plan decisions. They have the ability to analyze your alternatives so that you can make the best choice for you and your loved ones. Visit http://gmpensionbuyout.infofor more information.
      Jenny Goren
      • 2 Years Ago
      June 1 brought an announcement from General Motors on their plan to lessen pension liability by a predicted 26 billion dollars. The plan will offer a number of U.S. salaried retirees a lump-sum payment and other retirees a continued monthly payment. The decision-making process is complex; it is recommended to seek the counsel of an experienced financial advisor. The decision deadline is set for July 20, 2012. Go to http://www.gmpensionbuyout.info to read a free white paper and more information on the General Motors (NYSE:GM) Pension Buyout.
    • Load More Comments