This morning, CBS News and other news outlets reported that General Electric has announced that it will be freezing its pension plans for U.S. salaried workers and executives at year-end 2020, according to an October 7 GE press release. They will replace these benefits with a 3% of pay contribution to employees’ 401(k) accounts, and match a further 8% at a rate of $0.50 per dollar. In addition, 100,000 terminated vested employees will be offered lump sum payouts of their pension rights. The freeze will reduce its pension deficit by between $5 – $8 billion.
Elizabeth Bauer | Forbes