GM Pension Plans Remain Ongoing During Company Bankruptcy
FOR IMMEDIATE RELEASE
June 01, 2009
The Pension Benefit Guaranty Corporation today issued the following statement:
Although General Motors Corp. has entered Chapter 11 bankruptcy protection, its two defined benefit pension plans remain ongoing under GM's sponsorship. Both plans, one for hourly workers and one for salaried employees, continue to be insured by the PBGC, which guarantees benefits up to limits set by law.
Stakeholders in the bankruptcy, including GM, the United Auto Workers and the U.S. government, have stated their intent to maintain the plans under the sponsorship of a new corporate entity to be formed from the sale of GM's productive assets. The PBGC will work with all parties to achieve that outcome, which would be in the best interests of GM's more than 670,000 pension plan participants and the pension insurance program.
Individuals with questions about the PBGC and its benefit guarantees should consult the agency's auto-sector Web site at PBGC.gov. GM workers and retirees with specific questions about their GM pension benefit should call the GM Benefits & Services Center at 1-800-489-4646.
The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 29,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns.
— ### —
PBGC No. 09-33