As of December, 2009, General Motors measured its pension fund as being underfunded by an eye-watering $17.1 billion. This fund provides benefits to 688,000 participants and, while $4 billion is a far cry from 17.1, it is certainly a step in the right direction. According to The Detroit News, that figure will grow to include another $2 billion down the road in the form of GM stock.
[Sources: General Motors, The Detroit News – sub. req.]
DETROIT – General Motors Company today confirmed it has made the previously announced voluntary $4 billion cash contribution to its United States hourly and salaried pension plans, with a $2.7 billion contribution going to the hourly plan and $1.3 billion to the salaried plan.
"This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt. With a healthy balance sheet, a lower cost structure and focus on revenue generation, we continue to put in place the fundamentals for sustainable success," said Chris Liddell, GM vice chairman and chief financial officer.
All of the company's U.S. pension plans were last concurrently remeasured on December 31, 2009 for the 2009 Form 10-K and were underfunded in total by $17.1 billion. The company will next remeasure all of its U.S. pension plans at year end 2010 and their funded status will be included in the 2010 Form 10-K.
GM U.S. pension plans currently provide benefits to approximately 688,000 participants.