General Question

Marissa64's avatar

I'm a former GM employee. If GM files bankruptcy, will I lose my pension?

Asked by Marissa64 (19points) May 27th, 2009
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5 Answers

missingbite's avatar

That’s what happened to the airlines. Pension’s were lost or went to pennies on the dollar. Sorry and good luck. It may get bad.

dynamicduo's avatar

It could be so. I would talk to someone inside of GM for a definitive answer.

eponymoushipster's avatar


Pensioners and Employees
If GM went belly-up, retirees, workers, and taxpayers could all take a hit. Right now, its $90 billion pension fund is fully funded on an accounting basis. But the government-backed Pension Benefit Guaranty Corp., which acts as a safety net for corporate pension plans, says GM is underfunded by $31 billion.

How that would play out in a GM bankruptcy would be complicated. The PBGC could be on the hook for billions in pensions. The agency also could force the Detroit giant to keep funding its own pension plan even in bankruptcy—though the company could make the case that it should pay less. Still, GM’s 450,000 retirees would get hit: They may end up with smaller pension payouts, and their medical benefits, as well as the health-care plans of existing workers, would most likely be whittled back.

missingbite's avatar

@eponymoushipster The PBGC sounds like a good idea but ask a Delta Airlines pilot about them. My term pennies on the dollar came from them. A very good friend of mine is dealing with them and after 5 years, his pension through the PBGC is now at a whopping 21 cents on the dollar. That, after the first five years at 8 cents on the dollar. By the way, when Delta filed for bankruptcy protection, their pension fund was fully funded as well.

eponymoushipster's avatar

@missingbite i have no idea about any of it, that’s just a quote from the article. :)

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