GM To Offer Lump-Sum Pension Payments to 42,000

General Motors will give about 42,000 U.S. salaried retirees the choice of taking their pensions in one lump-sum payment.

The automaker expects the move will cut its pension obligation by $26 billion.

The retirees don’t have to accept the offer. They can continue receiving monthly pension payments administered by The Prudential Insurance Company of America.

Ford has offered some of its retirees a similar choice.

Approximately 118,000 U.S. salaried retirees are affected by these changes in different ways, depending on retirement date and eligibility. Salaried retirees eligible for the lump-sum payment will have until July 20, 2012 to make a decision on their payment options.