Dreaming of Retirement
Dreaming of Retirement

Urgent: GM Retiree Notice regarding GM Pension Buyouts

If you received a "Pension Buyout" option, your decision on the following MUST be made soon!

Should YOU take the lump-sum buyout?

Depending on your marital status, GM has offered you the following albeit limited choices:

a) widowed, widower, single...two options:

  1. take the lump sum
  2. let Prudential have the lump sum, your pension benefits end at your death

b) married...three options:

  1. take the lump sum
  2. let Prudential have the lump sum, your pension benefits end at your death
  3. let Prudential have the lump sum, your pension benefits continue to your surviving spouse however at a significant reduction

How are my "beneficiaries" affected if I were to select option 2 or 3 offered by GM/Prudential?

How many more options would I have if I were to take the lump sum, and take control of my pension?

Take the next stepUse our contact page to show your interest in scheduling a personal, private Q & A session and a trusted financial* representative will contact you the same day, or by the next morning.

Don't delay, your deadline is fast approaching.

Seminars will only give you more of the same general information that you already have from GM. What you need are specific examples NOW of how your choice of taking the lump-sum is the better choice. Anywhere in Michigan, Call Matt Skiba 734-395-5425 for your FREE evaluation and proposal.

To further express the importance of YOUR deadline, even though you want to choose the lump-sum option, if your completed "Election Form" (Document 4) is not postmarked by your deadline, unfortunately by default your pension will be given to Prudential.

For most retirees, this will be the single most important decision of their retirement. Contact us today.

* initial contact will be a licensed annuity representative until a series 6 or series 7 licensee is needed.


GM salaried retirees still protesting pension shift

GM's decision to terminate its salaried pensions and transfer them has drawn anger from many retirees - and some have threatened to stop buying GM vehicles.

Jim Shepherd, the General Motors Retiree Association president, wrote GM chairman and CEO Dan Akerson this month questioning the move, and noting that retirees would lose the protection of the Pension Benefit Guaranty Corp. - the government's pension insurer - along with federal law that governments employee pensions.

GM officials on the call said the July 20 deadline to decide whether to accept the lump sum will not be pushed back - even though some retirees say they have gotten incorrect figures and are awaiting corrected ones.

He said one option may be an informal boycott by individual members. "We've got retirees who are sleeping one or two hours a night and are sick to their stomach," he said.

"We believe that these changes are good for retirees...and for the company, which will see its pension obligation reduced significantly," wrote Brinkley. "Strengthening our balance sheet will allow GM to do something we haven't done in decades -- focus our attention and resources on being the best carmaker we can be. That is good for everyone with a stake in GM's success."

Akerson said this month the company would consider a similar move for hourly employees, but has made no decisions.

Click here for full Story:
Story Date: 06-22-12


More firms to offload pensions

MetLife Inc. and Prudential are among insurers that expect the GM deal to encourage more corporations to offload plans. Pension liabilities exceed assets by more than $435 billion, according to a Bloomberg review of data disclosed by firms in the Russell 1000 Index of large U.S. companies. Greece, facing demands for austerity measures in exchange for rescue funds, had total debt of about $450 billion at the end of 2011.

There "may be a greater willingness to pull the trigger and execute a transaction," said Robin Lenna, executive vice president of MetLife's corporate benefit funding group. "They have a model. Somebody already did it in a big way."

"The pension world will forever remember this transaction as the beginning of the era of pension de-risking," said Dylan Tyson, head of pension risk transfer at Prudential, the No. 2 U.S. life insurer. "This is a market whose time has come."

Timken Co. is among firms that may follow GM's path. The maker of bearings has spoken with Prudential and other insurers about annuitizing its pensions, which have $2.6 billion in assets and $3.1 billion in liabilities, said Glenn Eisenberg, the Ohio-based company's executive vice president of finance and administration.

Click here for full Story:
Story Date: 06-20-12


GM pension deal heaps 'significant risk concentration' on Pru: Moody's

Prudential Financial Inc.'s move to relieve General Motors Co. of some $26 billion in pension obligations is considered a "negative" event by Moody's Investors Service. The ratings agency said the deal was a "credit negative" for the life insurer because the GM contract will represent more than 5% of Prudential's general account holdings.

The carrier also is taking on the risk that the retirees would live longer than expected, he added, which would require Prudential to make more payments than anticipated.

"If they live longer than Prudential forecasted, that negative surprise from the company's perspective will cut into the company's profit on the GM transaction," Eric Berg, an analyst at RBC Capital Markets LLC, wrote in a June 4 note.

Click here for full story:
Story Date: 06-12-12


CEO Dan Akerson: GM would consider offering UAW retirees' pension buyouts

DETROIT, MI- General Motors Co. would consider offering pension buyouts to its United Auto Workers retirees if the opportunity presented itself, according to GM CEO and Chairman Dan Akerson.

"I'm not saying we're going to do it, but it's certainly something we would consider if the opportunity arose," he said during a press conference before the automaker's annual shareholders meeting this morning at the Renassaince Center in Detroit.

Akerson said offering one-time payments to its hourly UAW retirees instead of traditional monthly pension payments was brought up during contract negotiations last year, but GM is not currently discussing the option with union leaders.

Click here for full story:
Story Date: 06-12-12


Take a GM pension or lump sum? Do the math

"Everyone eligible should take a serious look at this option," ... "While retirees will assume investment risk with a lump-sum pension payment, there are many advantages."

Offering more than a third of GM's white-collar retirees this choice caused analysts to ask whether GM will do something similar with its larger hourly pension plans that cover hundreds of thousands of UAW retirees. "We see additional opportunities down the road," Chief Financial Officer Dan Ammann said. "We've taken a lot of steps over the last few years. We've gone about it in an orderly way."

"In general, the lump sum shifts the investment risk to the retiree, while giving the retiree greater flexibility in payout, tax management and survivability. .." Ammann said the plan will reduce the long-term risk of paying benefits to white-collar retirees. GM had worldwide pension obligations of $107 billion at the end of 2011, but only $94 billion available to pay them.

Click here for full story:
Story Date: 06-02-12


Helpful Links:

IRS Required Minimum Distribution (RMD) Question & Answers:

CDC Life Expectancy Chart
Life Expectancy Chart in PDF


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