GE Freezes Pension Plan, and the Stock Market Shrugs
There’s big news from (GE): The conglomerate is cutting its financial leverage by overhauling its pension plan, including a shift away from a so-called defined benefit plan to a defined-contribution system for some 20,000 employees. Underfunded pension plans have concerned GE investors in recent years and Wall Street analysts have frequently added the company’s pension-funding gap to its traditional debt balance when assessing its financial health. The company is freezing its U.S. pension plan for approximately 20,000 employees, pre-funding approximately $4 to $5 billion of funding requirements for 2021 and 2022, and offering a lump-sum payment option to about 100,000 former employees.
Published:10/7/2019 8:11:51 AM