| GM Chief Hopes to Return to Investment Grade Within Year
The moves, which follow Ford Motor Co. -based Rothesay Life, Prudential said last year. "Pension-plan sponsors are facing increasing regulatory and financial challenges," Charles Lowrey, chief operating officer for Prudential in the U. , said May 22. "And their response is that they're seeking innovative asset-management solutions. "Pension has continued to be a significant issue for General Motors," Ammann said today on a conference call with reporters. The changes apply only to retired U. salaried employees, not former union workers or retirees in other countries. "Our core business is designing, building and selling cars," GM's Ammann said. This is really a move for us to further refocus on our core business and get out of a non-core business. "We expect a continuation of pension settlement and de-risking activities. Prudential, the second-largest U. The cash will purchase the group annuity contract from Prudential and add about $1 billion in funding to the pension plans, Ammann said. 5 billion in cash to the salaried pension plans. Negotiations on this deal began last year, said Phil Waldeck, Prudential's senior vice president for pension and structured solutions. The transaction will be carried out by the end of this year, he said. Life insurers pay more in claims costs when death rates rise. Ford fell 4. The deal covers pension account values of about $160 million at Goldman Sachs's U. GM will contribute $3. 5 billion and a $200 million decrease in annual pension income. 12 after its light-vehicle sales increase in May beat quotations by 1 percentage point. Assuming pension risk from employers may provide "a big opportunity to deploy a lot of capital," Prudential Vice Chairman Mark Grier said at a May 22 presentation. |
Saturday, 2 June 2012
GM Chief Hopes to Return to Investment Grade Within Year
