General Motors continues to use its newfound cash in a manner that aims to please its accounting department. After receiving a sizable monetary infusion thanks to the largest IPO in U.S. history, GM is now focused on putting that money to good use. Its Korean subsidiary, GM-Daewoo, recently paid off a $1 billion credit that was owed, and today, The General is pouring $4 billion much needed greenbacks into its pension fund deposit.
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.]
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.]
GM Makes $4 Billion Pension Plan Contribution
2010-12-02
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.
2010-12-02
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.
Sign in to post
Please sign in to leave a comment.
Continue