Coffee Sipping Big Board Stocks

[EZ2]

GM retirees polled on pension buyouts


05/14 11:49 AM

--------------------------------------------------------------------------------

DETROIT, May 14 (Reuters) - Several General Motors Co retirees have been asked whether they would accept a lump sum pension buyout, raising the possibility that the largest U.S. automaker will mirror a recent move by Ford Motor Co (F:$10.429,0$-0.151,0-1.43%) to reduce its pension risk.

Polling organization Gallup has asked retirees about their appetite for a one-time pension buyout in lieu of a monthly payment, according to the website for the General Motors Retirees Association (GMRA).

GM's pension obligation of nearly $109 billion is a major concern for the company's investors and one of the few issues that was left untouched during the Obama administration's bailout of the automaker in 2009. GM's plan is underfunded by $13.3 billion.

Last month, Ford announced it was offering pension buyouts to 90,000 salaried retirees and former employees who are vested in its pension plan, starting in the third quarter.

The buyout program, which Ford described as unprecedented in its magnitude, will take a year to complete.

GM spokesman Dave Roman would not confirm whether GM asked Gallup to conduct the survey, but said the automaker frequently surveys its "stakeholders", including retirees. A spokesman for the association, which represents mostly GM salaried retirees, could not be reached for further comment.

The news was first reported in Automotive News.

GMRA has no knowledge that GM is planning on offering a "lump sum" pension buyout for GM retirees. The retiree association does not know who commissioned the Gallup poll.

Because Ford did not release details of its buyout plan, "it is impossible for GMRA to recommend any formula for acceptance or refusal of a lump sum 'pension buyout," the association said on its website.

Last year, as part of talks with the United Auto Workers, GM and the union agreed to discuss the possibility of pension buyouts for retirees represented by the UAW. In February, GM announced that it was moving its veteran white-collar workers to 401(k) retirement plans to reduce future pension liabilities. (Reporting By Ben Klayman and Deepa Seetharaman; Editing by Leslie Gevirtz)