General Motors Also Offers Pension Buyouts
On top of the recent news of Ford Motor offering salaried employees lump-sum payments to buyout their defined benefit pensions, General Motors announced last week they will be offering pension buyouts for 42,000 salaried retirees. While the detailed numbers have yet to be released, many Ford and General Motors retirees will be looking at very large lump sum offers. We would caution all pensioners that some advisers will be inclined to tell pensioners to take the cash, thus allowing for the adviser to manage the assets. It probably will not make sense for everyone to take the offer. Our May Sigma Summary, “Should You Take The Pay Out?”,reviewed several points that should be considered before making a decision. These factors include life expectancy, spouse survivor option, inflation assumptions, self-control, and generational planning. Please feel free to forward this on to any friends, relatives, or clients who might be able to use our expertise in helping them make the decision. We would be happy to counsel them and determine whether or not a buyout makes sense in their unique situation.
If you have any further questions, feel free to contact us.