General Motors announced several key changes to the salaried employee pension program, or Salaried Retirement Program (SRP), and the salaried employee 401(k) plan, or Retirement Savings Plan (RSP).
Effective September 30th, GM is freezing the SRP for employees hired on or before January 1, 2001. Any pension benefits accrued to this date will be fully vested. GM is also modifying the SRP to have the option of a lump sum payout of these accrued benefits upon retirement.
In lieu of any further accrued pension benefits, GM will make a “Retirement Contribution” of either 4% or 6% per pay period directly to an employee’s RSP. These contributions will be based on an employee’s date of hire. The Retirement Contribution will be made regardless of whether or not an employee contributes to their RSP. In addition to the Retirement Contribution, GM will continue to match dollar for dollar up to 4% of employee contributions.
If you have questions about these upcoming changes or how your personal retirement plan may be impacted, contact us toll-free at 1‑866‑444‑6246 to speak with one of our Certified Financial PlannersTM.