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GM Seen Fueling Pension Deals

More employers, facing retirement-funding shortfall, expected to offload plans.

By Zachary Tracer and Tim Catts, Bloomberg | Updated on June 19, 2012

General Motors Co.’s deal to cut pension obligations by $26 billion and shift plans to Prudential Financial Inc. is poised to fuel more transfers as U.S. firms face a retirement-funding shortfall the size of Greece’s debt.

MetLife Inc. 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 U.S. companies. Greece, facing demands for austerity measures in exchange for rescue funds, had total debt of about $450 billion at the end of 2011.

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