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GM Changing Pension Plan for Non-Union Workers, Freezing Wages and Bonuses (GM)
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General Motors Co. (NYSE: GM) is making changes to salaries, bonuses, and pensions for its non-union, salaried employees. The wage and bonus freezes will apply to all 29,000 of the company’s salaried workers.
GM will eliminate its defined benefit pension plan for about 19,000 salaried employees hired before 2001, and replace it with a defined contribution plan (401(k)). Employees hired after 2001 are already part of the defined contribution plan. The change is effective October 1st of this year. There will be no changes for the company’s retirees.
Bonuses will be smaller because the company did not hit all its financial targets last year, and there will be no salary hikes this year although employees will receive an additional week of vacation. Some employees will have an opportunity to earn larger bonuses this year as well.
GM is looking to reduce its pension and other costs as it tries to improve its sales and margins.
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