DETROIT (AP) - General Motors is changing the way it pays monthly benefits to white-collar retirees, and cutting its U.S. pension obligation by $26 billion.
The company says it will offer 42,000 retirees a lump-sum of cash to stop taking monthly benefits. The company will buy a group annuity for the rest of the salaried retirees, who will get their payments from Prudential Insurance Co. starting in 2013. The changes will affect a total of 118,000 white-collar retirees.
GM says it will make $3.5 billion to $4 billion in cash payments to its pension plans to buy the annuity. It expects the move to shrink earnings by $200 million a year because pension income will drop.
Shares of Detroit's General Motors Co. jumped 3% after the change was announced.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Ashauna Short was approved by the Indianapolis Board of School Commissioners Tuesday night to become John Marshall Community High School's new principal.
An Indianapolis couple was displaced from their home Tuesday night after what firefighters believe was an electrical fire in the attic.
Noblesville police were investigating an incident between two people that turned into a pursuit Tuesday night.