General Motors to Freeze Pensions - NBC 5 Dallas-Fort Worth

General Motors to Freeze Pensions

GM to adjust pension, pay plans



    General Motors to Freeze Pensions
    $200 million expansion to bring 180 jobs to North Texas.
    GM says it plans to freeze pensions and remove pay raises for some employees.

    A new pension policy planned by General Motors may affect workers in Arlington.

    General Motors Co. says it plans to freeze its U.S. pension plan for longtime white-collar workers and give all salaried employees annual bonuses instead of pay raises in an effort to hold down expenses.

    The Detroit-based automaker said Wednesday that roughly 19,000 salaried workers hired before 2001 will move from a traditional pension with guaranteed payments to a 401 (k)-type plan with contributions based on salary and bonuses. Employees hired after 2001 already are in the defined contribution plan

    The changes take effect Oct. 1.

    The change in policy may affect some of the 2,500 employees at the GM assembly plant in Arlington. Plans for expanding that facility were announced in January.

    GM also said it's offering bonuses to all 26,000 salaried employees and will release the amounts when it announces quarterly and full-year earnings on Thursday.

    GM vice president of global human resources Cindy Brinkley says the changes are geared toward increasing profitability and reducing risk.