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02-15-2012, 06:24 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Location: Naples
Posts: 2,179
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New GM Retirement Plan
In an effort to get it's arms around the fortune it is costing General Motors to support it heafty retirement plan, changes were announced today about the revisions going forward. The revisions affects SALARIED EMPLOYES ONLY. And, it does not affect anyone already retired. YIPEE! The hourly employes are not affected. That's because the union owns GM along with the Gvmnt. They sent me an email with the details but it is too complicated to burden this forum.
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02-16-2012, 07:05 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,821
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Do you have any details on what the changes were? -ERD50
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02-16-2012, 07:16 AM
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#3
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gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
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Heck, I retired from a US based heavy duty automotive assembly plant, where I was salaried (white collar - non-management) and the blue collars were/are represented by the UAW.
We lost our defined benefit (e.g. pension), replaced by the 401(k) back in the 80's, supplemented by a cash balance plan. BTW, the current UAW folks still receive their pension today.
If anything, GM is certainly behind the times. Maybe that was/is part of their profitibility problem...
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02-16-2012, 09:23 AM
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#4
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Full time employment: Posting here.
Join Date: Sep 2008
Location: Southeast USA
Posts: 548
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Quote:
Originally Posted by rescueme
Heck, I retired from a US based heavy duty automotive assembly plant, where I was salaried (white collar - non-management) and the blue collars were/are represented by the UAW.
We lost our defined benefit (e.g. pension), replaced by the 401(k) back in the 80's, supplemented by a cash balance plan. BTW, the current UAW folks still receive their pension today.
If anything, GM is certainly behind the times. Maybe that was/is part of their profitibility problem...
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+1
The Fortune 100 Megacorp I retired from and the associated union(s) did exactly the same thing.
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02-16-2012, 10:51 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by rescueme
..........
If anything, GM is certainly behind the times. Maybe that was/is part of their profitibility problem...
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GM Earns Record $9.19B Profit; Opel Posts Loss - Bloomberg
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02-16-2012, 10:54 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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This practice of giving some employees a better deal than others is a good way to drive a wedge into the workforce and create a lot of tension as some folks (newer hires and salaried/non-union employees) are made to feel like "second class citizens."
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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02-16-2012, 11:06 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Location: Naples
Posts: 2,179
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Quote:
Originally Posted by rescueme
Heck, I retired from a US based heavy duty automotive assembly plant, where I was salaried (white collar - non-management) and the blue collars were/are represented by the UAW.
We lost our defined benefit (e.g. pension), replaced by the 401(k) back in the 80's, supplemented by a cash balance plan. BTW, the current UAW folks still receive their pension today.
If anything, GM is certainly behind the times. Maybe that was/is part of their profitibility problem...
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It certainly is the biggest problem behind their financial woes from what I know. Just heard today that the cost to the company is $9B per year to fund the salaried retirement program. I am one of the retired salaried employees that has been enjoying that pension check for 23 years now. It is a "defined benefit" plan that carries with it a guarantee of backing by the fed. That type plan is now going by the wayside and is being replaced by a "defined contribution" plan. Most companies have gone to this type plan where the employees have a 401k available to them. I had the luxury of both the defined benefit plan AND the 401k. Todays paper said that the new plan will cover 19k salaried employees hired before 2001. Salaried employees hired since 2001 were already on this new plan. (didn't know that).
Please don't hold me to this number, but I think I heard there are 160k
salaried retirees under the defined "benefit" plan. And, remember that the hourly employees and retirees are not affected by this change.
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02-16-2012, 01:29 PM
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#8
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Full time employment: Posting here.
Join Date: Aug 2006
Location: athens
Posts: 802
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I saw this reported on Bloomberg this morning and figured someone on this forum would mention it. I wonder what took GM so long to get around to this? My company robbed the pension during an LBO. They locked in everyone with an annuity for work/ years up to that time. Later the company was sold for another big payday for the owners of the LBO. Sadly, I missed out on all the graft cash from that sale. This kind of thing has happened hundreds of times in the last twenty years whenever a company changed ownership or went private. I've got a book that explains why it happened, which was a wrinkle in the law that congress didn't stop.
Defined pensions are a dying breed. I guess I'm just lucky to have what I have.
__________________
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
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02-16-2012, 03:52 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Posts: 2,395
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Here is a link with more details:
GM to move all salaried workers to 401(k) plans | The Detroit News | detroitnews.com
I've wondered how many GM retirees are out there on a pension. I haven't seen a number. Would think it's pretty big... but slowly getting smaller, smaller
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
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02-18-2012, 10:15 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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I just don't think most employees will be successful with a 401k only type plan from employer. Most people will need SS plus one other other stable income source in case they are unskilled/unlucky with their DC plan.
GM has actually done a good job with thier salaried pension plan....some due to luck. They froze the old plan aroung 2006 and switched over to a "career average" DB fomula. The plan was overfunded a year or so before the crisis and they sold off some mortgage debt before that market tanked. They used the excess for a window retirement program as the crisis hit. Current low interest rates increase the balance required to be at 100%.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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