Reader: What Will Happen to My Pension if My Company Tanks?

G M Bankruotcy

I have been receivingmy husbands pension for about 10 years. I am 78 and receive approx. 1100 monthly. If gm files bankruptcy will i loose my pension? Or what will I receive?

Margaret of FL @ May 31, 2009 16:57:07 PM

gm hourly retired pension

My Husband worked for GM for 35 years, then passed away from Bile duct cancer, he was exposed to toxic chemicals. I received 1/3 of his pension, he never retired, he was on medical leave. He loved GM, he was an engineer, and worked long hard hours, he never made these inflated saleries you hear about. Most of this is just hype from people that don't know the facts, even with overtime his salary was about 120,000 a year, this was inline with everyone in his classification at the tech center in Warren. All of this talk about how much the employees make includes every benefit, including insurance. These people are hard working and their jobs aren't easy, they earn every dime they make. It is only the very highest at the line of command that make the inflated salaries. So don't blame the little man, its the same as in our government, and in the banking industry, its the average person that feels the pain. If I loose my insurance and pension as little as it is, I am out of my home, they I am a burden placed on welfare, so whats the answer, don't be angry at the underdog. We never had a free car, yes we received a discount for buying GM, if we all bought American, we would not be having so many problems.

Claudia of MI @ Mar 07, 2009 23:21:29 PM

retired at 55

The way things are going with GM now, it looks like I will be 60 or 61 yrs old if they belly up on us. I understand you must be 65 or older to get the full amount of your pension. I only get half of uaw/gm pension from fidelity investment of 1600 a month. I do know of a fellow who got caught in that Ernron deal and he only gets 164.00 a month now.The way I see it I could very well lose half of my share of the pension. Is there any way to calculate this?

Lindy of TN @ Feb 26, 2009 10:23:19 AM

What Will Happen to My Pension if My Company Tanks?

Thank you for your reply about my QDRO pension. What I am now getting is 1600 a month. Can anyone estimate what kind of cut I may have to take if GM tanks on us? My former husband had over 30 yrs in and retired at 55 1/2. He gets 1600 also. It was divided up in half.

Lindy of TN @ Feb 23, 2009 20:09:54 PM

Re: Retired at Age 55

If you are already retired when PBGC takes over your pension plan, then the maximum amount you can get is determined by your age when the plan was taken over, not your age at retirement. If you are not already retired when your plan is taken over, then your maximum amount is determined by your age at retirement.

Lindy in TN, if you have a QDRO, then even if GM goes bankrupt, your benefit is guaranteed by PBGC (up to the legal limits) and will be paid to you according to the terms of the QDRO.

PBGC_Contractor of MD @ Dec 23, 2008 12:46:04 PM

Rayless of XX

"I would like to know why is General Motors is crying the blues about no money when they are giving the hourly workers such exhorbatant buy out packages plus a full pension and a $30,000 car voucher just to retire early."

You are misinformed. They gave EITHER a big buyout package, after which all ties to GM were cut--no more benefits whatsoever, including health care,or pensions; OR a small buyout package with full pension and benefits.

Once it's all said and done, if a person took the lump sum small buyout package cash in hand, after taxes he or she would end up with $30,000. That isn't a whole lot to depend on and certainly not "exhorbatant." Especially if they cut pensions further.

Sweetsong of MI @ Dec 14, 2008 16:58:44 PM

ah gee what about canada ford pensoner

canada pensoner what happens

petro huryn of @ Dec 11, 2008 15:38:35 PM

General Motors

I would like to know why is General Motors is crying the blues about no money when they are giving the hourly workers such exhorbatant buy out packages plus a full pension and a $30,000 car voucher just to retire early. Why can't they just be like every other company and simply lay off the junior employees in times of trouble, it should be up to the unions to go after any employee with enough years to retire to do so and save a lower employees job, this should be given as a choice. I think their problem is simply poor management skills.

Ray Meadus @ Nov 21, 2008 20:24:52 PM