General Motors Company announced that it will provide select U.S. salaried retirees a lump-sum payment offer and other retirees with a continued monthly pension payment securely administered and paid by The Prudential Insurance Company of America, a Prudential Financial, Inc. company. Approximately 42,000 salaried retirees and surviving beneficiaries will be eligible to receive a voluntary single lump-sum payment option.

By taking advantage of the lump sum pension payment option, GM retirees may reduce many potential pension risks including longevity risk due to inflation, tax risk, and mortality risk. Most importantly for current employees, at retirement it will completely eliminate "PBGC risk" – the risk that monthly pension payments are someday reduced by the Pension Benefit Guaranty Corporation, as Delphi retirees suffered.

Mainstay Capital Management has developed a comprehensive Pension Payment AnalyzerTM to assist employees and retirees in evaluating this new option.

MCM’s Pension Payment AnalyzerTM can help you answer these questions:

Which pension benefit payment option is best for my personal situation?
What is the present lump sum value of my pension?
What are my monthly cash flow needs in retirement?
How are monthly pension payments impacted by inflation?
How will a lump sum benefit affect my healthcare benefit at age 65?
What are the tax implications of a lump sum versus monthly pension payments?
Do I want the ability to take distributions from my pension benefit at my discretion?
How does the life expectancy of my spouse and I impact this decision?
How can each pension payment option impact my estate planning and financial legacy?
How would my overall retirement income plan change with a lump sum pension Payment?
How can a lump sum pension payment improve flexibility in my income and tax planning?
What is the best way to optimize my overall retirement savings and pension benefits?
What changes should I consider in my GM RSP, IRA, and Social Security distributions?
For current employees, how would a PBGC takeover of GM’s pension plan impact my pension benefits?
Mainstay has counseled thousands of auto workers on retirement saving, planning, and investing. We can provide a comprehensive Retirement Income Analysis, help you evaluate "what-if" scenarios, and assist you in making well-informed decisions concerning your GM pension payment options.

Call Mainstay Capital Management toll-free at 1-866-444-6246 to discuss your personal situation.

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