In August 2012 GM paid $3.6 billion in lump sums to 12,500 salaried retirees, and it moved most other salaried retirees to Prudential later that year. If your salaried benefit is still in the plan, here's how to value it.
Where the GM pension stands
GM's U.S. salaried pension covers employees hired before January 2001, and its accruals stopped September 30, 2012. Salaried benefits are based on years of service and pay history. Hourly employees hired before October 15, 2007 are in plans that pay stated amounts per year of service, with supplements for those who retire with 30 years before normal retirement age. Hourly employees hired after that date are in a defined contribution plan.
Lump sums and insurer transfers
In June 2012 GM offered a voluntary lump sum to about 42,000 salaried retirees and surviving beneficiaries and agreed to buy a group annuity from Prudential for most other salaried retirees, for an expected $26 billion cut in the salaried obligation. GM paid $3.6 billion in lump sums to 12,500 participants in August 2012 and a $25.1 billion annuity premium in November and December 2012. Prudential began paying those retirees in January 2013. GM said salaried employees remaining in the plan could choose a lump sum or monthly pension at retirement.
What a lump sum is worth in 2026
When a private plan pays a lump sum, it can't be smaller than the IRS 417(e) present value. Plans that use November rates for 2026 apply the November 2025 segment rates: 4.07% for payments in years 1 to 5, 5.15% for years 6 to 20 and 6.01% after that, with the IRS 2026 mortality table from Notice 2025-40. On those inputs, a $3,000 monthly benefit starting at 65 has a minimum lump sum of about $442,500. Your plan's lookback month can differ, so check your Summary Plan Description, and run your own benefit through the lump sum calculator.
PBGC coverage
Benefits still in a private single-employer plan are insured by the PBGC. For a plan that terminates in 2026, PBGC guarantees up to $7,789.77 a month for a straight-life annuity starting at 65, less for earlier starts or survivor forms. Benefits moved to an insurer leave the PBGC system and rely on the insurer and state guaranty associations instead.
Social Security
GM jobs paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023. If the pension covers your basic expenses, delaying Social Security toward 70 raises the one income source that adjusts for inflation. Model it with the Social Security calculator.
The GM employer page lists the filings behind every date and dollar figure here.