Tag Archives: Kim O’Brien

Earlier this month, General Motors was at the center of some controversy when the automaker unveiled that it would be converting its pension payment plan for 118,000 salaried retirees as a means of shoring up the company’s finances. The announced plan would offer buyouts to currently retired salaried workers who agree to stop receiving a monthly pension check and opt instead for a lump sum payout or equivalent monthly annuity checks paid out by Prudential Insurance Co. So, where does this leave GM’s retirees? Some have expressed reservations that, in transitioning from pensions to annuity payouts, they stand to lose the security of their payments because annuities are not secured by a federal authority like the FDIC, and will have to forgo cost-of-living adjustments. Continue reading →