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GM Pulls Plug on Traditional Pension Plans

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Originally published on Fox Business.

General Motors Co (GM: 25.29, -0.11, -0.43%) said on Wednesday it will end traditional defined benefit pension plans for its U.S. white-collar employees, seen as consistent with its goal of lowering pension risk for investors.

The move comes the day before GM reports fourth-quarter earnings, which are expected to show the weakest profit since the No. 1 U.S. automaker's post-bankruptcy IPO in late 2010.

There will be no across-the-board pay increases for GM's 29,000 U.S. salaried workers in 2012, but some workers will get richer bonuses based partly on the nature of their jobs, said Cindy Brinkley, head of human resources for GM.

GM's pension obligations were underfunded by about $10.8 billion by the middle of last year, the company said, which is seen as one of the biggest risks for investors.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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