PBGC Request To GM For Pension Information Goes Unanswered
November 17, 2008: 05:15 PM EST
CNN Money.com
WASHINGTON -(Dow Jones)- The U.S. Pension Benefit Guaranty Corp. on Monday
said General Motors Corp. (GM) hasn't been responsive to the agency's request
for updated financial information regarding the auto maker's two pension
programs.
Agency spokesman Marc Hopkins said the PBGC is looking for a "more accurate"
picture of the auto maker's pension programs stability, which is necessary for
the agency to effectively monitor the financial health of auto makers.
"So far the auto maker has not been responsive," Hopkins said, adding "We are
currently aware of the status of the other auto makers."
GM spokeswoman Renee Rashid-Merem said last week that the company's pension
program for hourly workers is underfunded by $500 million, while the company's
plan for salaried workers is overfunded. She also said GM doesn't expect its two
pension programs to become government liabilities in the short term.
GM officials couldn't be reached for comment.
Rashid-Merem said GM doesn't expect "any minimum funding requirements for both
hourly and salary plans in the next three to four years" because of its overall
pension status.
Should GM collapse and the company become unable to fund its pensions,
liabilities from the programs could lead to a significant increase in PBGC's
already $14 billion deficit.
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684; darrell.hughes@
dowjones.com
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(END) Dow Jones Newswires
11-17-08 1715ET
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