Tim Catts and Zachary Tracer
GM pension plan shift may be signal of things to come
General Motors’s deal to cut pension obligations by $26 billion and shift plans to Prudential Financial is poised to fuel more transfers as US firms face a retirement funding shortfall the size of Greece’s debt. MetLife and Prudential are among insurers that expect the GM deal to encourage more corporations to offload plans. Pension liabilities exceed assets by more than $435 billion, according to a Bloomberg review of data disclosed by firms in the Russell 1000 index of large US companies. Greece had total debt of about $450 billion at the end of 2011.