GM Pulls Plug on Traditional Pension Plans

NLXSK1

NLXSK1

Well-Known Member
General Motors
Co (​
GM
: 24.93, -0.47, -1.85%) said on Wednesday it will end traditional defined benefit pension plans for its U.S. white-collar employees, seen as consistent with its goal of lowering pension risk for investors.The move comes the day before GM reports fourth-quarter earnings, which are expected to show the weakest profit since the No. 1 U.S. automaker's post-bankruptcy IPO in late 2010.There will be no across-the-board pay increases for GM's 29,000 U.S. salaried workers in 2012, but some workers will get richer bonuses based partly on the nature of their jobs, said Cindy Brinkley, head of human resources for GM.GM's pension obligations were underfunded by about $10.8 billion by the middle of last year, the company said, which is seen as one of the biggest risks for investors.Under CEO Dan Akerson, GM has sought to create a "fortress balance sheet," and the pension moves announced on Wednesday are a part of that ongoing process, Brinkley said.About 19,000 U.S. salaried workers hired before 2001 on the traditional pension plan will be shifted to a defined contribution 401(k) as of Oct. 1 this year, Brinkley said.Another 10,000 U.S. salaried workers were hired after Jan. 1, 2001, and are already in the defined contribution 401(k) type plan, GM said.Retired salaried workers will not experience changes in their pension plans, Brinkley said.

Read more: http://www.foxbusiness.com/industries/2012/02/15/gm-pulls-plug-on-traditional-pension-plans/#ixzz1mVzH7NCy​
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Why are the unions not screaming about this?
 
R

redivider

Well-Known Member
as GM plans to cut pension plans for employees it posts its biggest profit in its history. 7.9billion dollar profit, yet it has to do away with great benefits that spread the wealth and make america great...AFTER WE THE TAX PAYER BAILED THE FUCKERS OUT.

VICTORY FOR THE 1%.
 
NLXSK1

NLXSK1

Well-Known Member
desert dude said:
Class warfare, of course. Ending pension plans for white collar (i.e. non union) employees... Seems like victory for the 99% to me.
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Good point, I missed that part. I guess management isnt union and therefore the unions dont care.

It is a good move on GM's part.
 
NLXSK1

NLXSK1

Well-Known Member
NoDrama said:
Yep, anytime lots of people get fucked by big corporations it's just fucking great!
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They are not exactly getting fucked. They are getting benefits more in line with the rest of the private sector.

It is not realistic to get paid a pension for 30+ years after you have left a job. There is no economic model that can sustain that type of benefit system.

Not even the government can continue on that path...
 
R

redivider

Well-Known Member
NLXSK1 said:
They are not exactly getting fucked.
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They are getting benefits more in line with the rest of the private sector.
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companies operated for around 40 years in this fashion and they survived how many economic cycles?

greed is killing this country. the rich getting richer and richer and richer benefits only the rich.... the rest of us are feeling the squeeze the rich have never had it better.....
 
UncleBuck

UncleBuck

Well-Known Member
redivider said:
companies operated for around 40 years in this fashion and they survived how many economic cycles?

greed is killing this country. the rich getting richer and richer and richer benefits only the rich.... the rest of us are feeling the squeeze the rich have never had it better.....
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surely you jest.

the rich had it better once, right before the great depression, i believe :)






nlxsk is just trying to help by sending us into another great depression, which would make sure that the president won't get reelected and therefore stop him from opening any of his super awesome businesses.
 
NLXSK1

NLXSK1

Well-Known Member
Uncle Buck is just mad that the government does not mandatorily confiscate a much greater amount of income from the 1% so they are kept more in line with the rest of us peasants.

If they only took more from the rich everything would be just utopia in America!!!

God bless class warfare!!
 
UncleBuck

UncleBuck

Well-Known Member
NLXSK1 said:
Uncle Buck is just mad that the government does not mandatorily confiscate a much greater amount of income from the 1% so they are kept more in line with the rest of us peasants.

If they only took more from the rich everything would be just utopia in America!!!

God bless class warfare!!
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so, i take it you have nothing to say about anything i've posted? just going to accuse me of "class warfare" for pointing out historical data?

perhaps you will accuse me of class warfare for pointing out more historical data?



care to tell me what italy has been doing to fight it's debt problem? or should i tell you? i'm dying to tell you. play dumb here.
 
NLXSK1

NLXSK1

Well-Known Member

  • so, i take it you have nothing to say about anything i've posted? just going to accuse me of "class warfare" for pointing out historical data?​


    ​
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Your solution seems pretty clear. Use the government to advance tax rates until they adversely affect the income of the rich to force it to be more in compliance with everyone else.

Can I tell you what anyone needs to do to fight their debt problem? CUT SPENDING!!!

Lets take a look at a government spending graph. Show me in the last decade where the government spent less money... You know, through the recessions and that. Show me where the government actually cut back... oh wait... The government spends more money when times are good and then when times are bad.... THE GOVERNMENT SPENDS EVEN MORE MONEY.

It is not the governments job to engineer socialism and make sure that everything is economically fair. The government is not robin hood who's job it is to steal from the rich to give to the poor.

Before you tell me what italy has done, why dont you tell me what American politicians have done to cut back on our spending, debt and/or deficit in the last decade....
 
UncleBuck

UncleBuck

Well-Known Member
NLXSK1 said:
...CUT SPENDING!!...spent less money......cut back... oh wait... .... THE GOVERNMENT SPENDS EVEN MORE MONEY...engineer socialism ...steal from the rich to give to the poor....cut back on our spending....
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you seem to be preoccupied with this spending thing, so i thought i'd class warfare you with more historical data...



as you can see, spending does not increase sharply as debt does. the inverse correlation between top tax levels and debt is much clearer.

 
UncleBuck

UncleBuck

Well-Known Member
oh yeah, almost forgot.

italy raised tax on the wealthiest, cut back on tax evasions, and raised the retirement age to 62 for women and 66 for men, respectively. they are also investing in infrastructure improvements as well.

not much talk about them lately, is there? seems like the technocrats installed by berlusconi's replacement are managing things pretty well.
 
UncleBuck

UncleBuck

Well-Known Member
why, look at this! spending as part of GDP is roughly the same, going up during bad times and down during good times. yet the spending does not increase precipitously, as does the debt/deficit!



why does spending not correlate with debt increase in the precise way that top tax rates inversely do? anyone?
 
NLXSK1

NLXSK1

Well-Known Member
Why dont you show me government spending as real dollars and not just a percentage tied to the GDP??? Oh right, then it would look bad for you.

We are not Italy. If we confiscated 100% of all of the profit from the 1% we still would not be able to close the deficit gap.

But you dont want to look at it that way, you just want to be manipulated by the politicians into thinking that somehow the rich are getting a better deal than you are and the only way to make it FAIR is to confiscate more wealth from them. I get it, you drank the coolaid.

All we need is to confiscate more money from the people by the government and everything will be better according to Uncle Buck... Yeah, the problem is that we just are not paying enough....
 
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