General Motors has completed the transfer of its retiree pension benefit obligations to a group annuity contract with Prudential Insurance Company of America.
The deal covers 110,000 salaried General Motors retirees. Under the terms of the agreement, Prudential received about $25 billion in premiums from the General Motors Retirement Program for Salaried Employees for the purchase of a group annuity contract. Effective Jan. 1, 2013, Prudential will begin administering payments to these retirees.
"We are delighted to have completed this landmark pension transfer agreement with General Motors and welcome the GM retirees who will now receive annuity payments from Prudential," said Christine Marcks, president of Prudential Retirement. "We look forward to fulfilling the promise of guaranteed lifetime income to these retirees, as we have done for the millions of Americans whose pensions we have paid since 1928."
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