Debt-ridden GE abruptly freezes 20,000 employee pensions

A General Electric Co. logo hangs above the entrance to a building where a GE news conference was being held in New York U.S. on Wednesday Oct. 21 2009

The freeze on the U.S. GE Pension plan will impact approximately 20,000 employees nationwide with salaried benefits, including hundreds who work in the Schenectady area, at facilities including the Schenectady manufacturing campus and Global Research in Niskayuna. Meanwhile, companies such as FedEx Corp. have turned to offloading pension liabilities to insurers, including MetLife Inc.

Like other corporations, GE has been phasing out its pension amid a push toward self-directed retirement plans such as 401 (k) s. GE said it hasn't allowed new workers into its pension plan since 2012.

Shares rose 2.6% to $8.79 in premarket trading.

It's the latest cost-cutting move by CEO Larry Culp, who took over the company past year, and is expected to trim $6-8 million in debt. We are committed to helping our employees through this transition, he added. Culp said last month at an industry conference that interest rates could create a US$7-billion headwind for the pension this year. About 700 employees in a supplementary plan will also be affected. A potential ruling will represent Ireland's first decision related to US companies since privacy laws went into effect.

NYCC: The Walking Dead Season 11 Officially Confirmed
The upcoming third series in "The Walking Dead" universe will play on Amazon Prime Video and AMC's channels internationally. Frank Darabont originally developed The Walking Dead for television, while Angela Kang now serves as the showrunner.

The pension freeze will begin on January 1, 2021, and is said not to affect GE retirees that are already collection pension benefits through the program. GE will offer a lump-sum payment to 100,000 eligible former employees who haven't started receiving their monthly pension payments.

GE expects to record a non-cash pension settlement charge in the fourth quarter, but did not specify the amount.

"Returning GE to a position of strength has required us to make several hard decisions, and today's decision to freeze the pension is no exception", Chief Human Resources Officer Kevin Cox said in a statement.

As of Friday's close, the company's market cap was just under $75 billion.

Related News:

Most liked

Thiem Back at ATP Finals After Reaching China Open Decider
The win secured Thiem's fourth title of the year after triumphs at Indian Wells, Barcelona and Austria. Things got rockier for the Greek in the second set, a marathon which took almost an hour to decide.

Washington Fires Jay Gruden
They allowed nine disruptions in the first half, which was their previous season-worst over a full game (Weeks 1 and 4). McCoy has not played yet this season and was still working his way back from a broken leg he suffered last season.

MacOS Catalina 10.15 Officially Released, Here's What's New and How to Install
On macOS, iTunes is being split into Apple Music, Apple Podcasts and Apple TV, much like what users already see in iOS and iPadOS. It's happening a little later in the season than usual, but Apple's latest version of macOS is available to download today.

HSBC to Cut 10000 Jobs to Trim Costs: FT
Quinn, then Chief Executive of HSBC Global Commercial Banking, has been with HSBC for 32 years - so he knows the bank well. There are few details as yet as to where the cuts will be made and HSBC has made no official comment.

Raptors, Kyle Lowry Agree To One-Year Extension
Lowry is set to begin his eighth season in Toronto, making the 33-year-old the longest-tenured active member of the Raptors. Lowry averaged 14.2 points, 4.8 rebounds and a career-best 8.7 assists over 65 games last season for Toronto.

Higuain winner beats Inter to put Juventus top of Serie A
Juventus leapfrogged their opponents into top spot after ending the erstwhile leaders' ideal start under Antonio Conte . Lazio's Joaquin Correa missed a chance for the victor when he sent a penalty kick over the bar two minutes from time.

Hailey Bieber Apologises For Video Where She & Justin Mock Taylor Swift
The clip was quickly criticized by fans of Swift , who accused Bieber and Baldwin of making fun of Swift's reaction. Anyway, One thing i know is both scooter and i love you.

IFixit tears down Samsung's 'improved' Galaxy Fold
The Galaxy Fold 5G will, in any case, be restricted to South Korea and won't be discharged in the United States of America either. The two biggest weaknesses of the original model were the delicate display and exposed hinge.

Supreme Court bars Maharashtra govt from cutting more trees in Aarey
The court ordered tree cutting to halt at least until it holds another hearing on October 21. SC's forest bench to hear plea regarding felling of trees in Mumbai's Aarey on October 21.

European Union presses United Kingdom to resubmit Brexit plan as end-game looms
Barnier has already said he does not have a mandate from the EU27 to agree a deal on the terms so far presented by Downing Street. Johnson outlined his latest proposals in a telephone call to French President Emmanuel Macron on Sunday, an Elysee official said.

Afghanistan Taliban commanders freed 'in swap for Indian hostages'
Two Taliban officials told RFE/RL on October 6 that the swap took place earlier in the day, but they didn't disclose the location. The Taliban said they were in Islamabad to discuss the condition of roughly 1.5 million Afghan refugees living in the city.

Opposition parties win in Kosovo elections
In 2013, Pristina and Belgrade agreed to an EU-mediated dialogue to normalise ties but little progress has been made. The election is going to be modulated by over 34,000 monitors, including 100 in the European Union.

Kylie Jenner Shares Cryptic Quote After Travis Scott Split
At the time, she wrote: "How many times a day do you block and unblock me girl", alongside four laughter crying emojis. She continued with a follow-up tweet giving a personal update of her relationship with La Flame.

NLDS Game 2 will be huge for the St. Louis Cardinals
Marcell Ozuna flared a ball over the infield into unoccupied right-field territory and cruised into second base with a double. They're one win away from that elusive postseason series victory, advancing in the playoffs for the first time since 2001.

Manchester City v Wolves: Visitors to keep the tally down
David Silva nearly broke the deadlock from a free-kick on the edge of the area 67 minutes gone, but rattled the crossbar. Today was the day we create less than the other matches, even in the loss at Norwich we create a lot.