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Auto Sector Pension Plans: Information for Workers and Retirees

Auto Sector Pension Plans: Information for Workers and Retirees

As a service to workers and retirees with questions about their PBGC-insured benefits, the PBGC continues to maintain this auto-sector information page. The PBGC is not commenting on the future of U.S automotive companies or suggesting their pension plans will be assumed by the PBGC.

Workers and retirees from companies both within and outside the auto sector still call PBGC with this simple question: Will my pension be safe?

The answer is, "Yes, up to certain limits."

The qualified defined benefit pension plans of the Big Three automakers and most of their principal suppliers remain ongoing and insured by the PBGC. If a company cannot maintain its underfunded pension plan, the PBGC will step in and take responsibility for the plan. The PBGC will pay all the plan's benefit promises, up to certain limits set by Congress. These limits mean that some individuals, typically younger retirees, will see reduced benefits.

Unless and until the PBGC takes responsibility for your plan, we cannot answer specific questions about individual benefit amounts or possible reductions. For information on the status of your benefit, contact your plan administrator.

The links below provide information of interest about the PBGC’s benefits, and events affecting pension plans in the auto sector.

Last updated May 31, 2017