The Pension Benefit Guaranty Corp. said it will work with all
parties involved in General Motors Corp.'s (GM) bankruptcy to
ensure the auto maker's two pension plans remain under the
company's sponsorship.
The PBGC noted the various parties in the case - including GM,
the United Auto Workers union and the federal government - are
intent to have the pension plans not be transferred over to the
federal agency that protects pensions for workers.
"The PBGC will work with all parties to achieve that outcome,
which would be in the best interests of GM's more than 670,000
pension plan participants and the pension insurance program," it
said.
The agency noted last month that its deficit tripled between
Sept. 30 and March 31 to $33.5 billion, but that it still had
enough assets to pay benefits for years even if GM's plans came
under the PBGC's administration. The plans for GM and Chrysler LLC,
which is about to exit bankruptcy, were underfunded by $29
billion.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com