There is no change for retirees who are already collecting
their pension benefits. GE’s pension plan has been closed to new entrants since
2012. In the fourth quarter of 2019, GE will record a non-cash pension settlement
charge but the specific amount has not been disclosed.
Kevin Cox, Chief Human Resources Officer said, “Returning GE to a position of strength has required us to make several difficult decisions, and today’s decision to freeze the pension is no exception.”
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GE also plans to use part of its proceeds, totaling $38
billion, from the sale of its various businesses to pre-fund around $4-5
billion of funding requirements under the Employee
Retirement Income Security Act for 2021 and 2022.
The company is also offering around
100,000 eligible former employees, who have not started their monthly pension
plan payments, a limited-time option to receive a lump sum payment.
GE’s shares were down in morning hours on Monday.