Will GM/General Motors Pensions be Safe?

  • Thread starter Thread starter Heather B
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Heather B

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My in-laws who are in their sixties live off of a General Motors pension and social security. They have their house paid off and they seem to do fine financially. My mother-in-law is the one who retired from GM about 13+ years ago due to rhuematoid arthritis. They also have very good health benefits, which they both need because because of her health problems and my father-in-law has heart problems too.

My concern is that if and when GM files bankruptcy what will happen to my in-laws pension and health benefits? I'm am very concerned for them. Does anyone have any idea what might happen to all the retirees and their pensions?
 
If GM goes bankrupt the pension may go into the federally insured pension guaranteed trust fund. That means her pension may be reduced depending how much it is. As far as the health benefits are concerned, if GM goes bankrupt, figure that will be gone. At that point she'll have to rely on Medicare and private insurance like the rest of us.
 
... but when pensions go to the PBGC (government insured pension fund), pensions are rarely paid out at full value.
 
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