Print
More News

GE's Pension Freeze To Impact Nuclear, Aviation Units

By Christina Haley O'Neal, posted Oct 7, 2019
General Electric’s pension freeze will have an impact on its nuclear and aviation units, company officials said Monday.

GE announced Monday that it was taking actions related to its U.S. retirement benefits as part of a series of moves in its strategy to improve its financial position, according to a news release.

The company has been struggling in its profits over the years, and in 2018, restructured the company under its new CEO Larry Culp, among other initiatives that followed to decrease debt.

​In total, the actions GE announced Monday are expected to reduce the company's pension deficit by approximately $5 billion to $8 billion and industrial net debt by approximately $4 billion to $6 billion, stated the release.

Officials said the company is freezing pensions for about 20,000 employees with salaried benefits.

A spokesperson with GE corporate said in an email Monday that the figure includes some employees from GE Aviation and GE Hitachi Nuclear Energy, which is headquartered in Wilmington. 

GE Hitachi’s headquarters and a GE Aviation facility share a campus off Castle Hayne Road in Wilmington. The GE site in Wilmington employs about 2,800 people.

The freeze impacts employees that began working for GE before it closed the plan to new entrants in 2012, the spokesperson said. GE’s pension plan has been closed to new entrants since January 1, 2012, stated the release.

“We have not broken out specific impact by business,” the spokesperson said in an email. “The changes do not impact any union or non-union production workers or retirees.”

The impacts also include U.S. supplementary pension benefits for about 700 employees who became executives before 2011, stated a news release.

The changes will go into effect Jan. 1, 2021.

The company’s moves also included offering a limited time lump-sum payment option to about 100,000 eligible former employees who have not started their monthly pension payments, according to a company news release.

Notices will be provided to eligible participants, stated the release. Those who elect to receive a lump sum should receive it in December.

“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," said Kevin Cox, chief human resources officer at GE, in a news release. "We carefully weighed market trends and our strategic priority to improve our financial position with the impact to our employees. We are committed to helping our employees through this transition."
Ico insights

INSIGHTS

SPONSORS' CONTENT
Alexandra

Don’t Let Grinch Ruin Your Holiday Cheer This Year

Alexandra Lysik - Cavik Insurance
Aaeaaqaaaaaaaaidaaaajdhiztrkodm0lte2yjetngrkmy1hotrmltawmdvlmwqyztmymw

Masterstroke — the Art of Venture Creation

Diane Durance - UNCW Center for Innovation and Entrepreneurship
Robindavisccu1 1011944433

When is the Best Time to Buy a New Home? 

Robin Davis - Corning Credit Union (CCU)

Trending News

ILM Cuts Costs, Awards Contract In Final Phase Of Expansion

Christina Haley O'Neal - Nov 15, 2019

Digital Human Helps Hearts

Johanna Cano - Nov 15, 2019

Sport Attracts Players To Leland

Laura Moore - Nov 15, 2019

Hard Labor: Employers Face Strained Searches For Workers

David Frederiksen - Nov 15, 2019

Navassa Driven Closer To Major Growth

Cece Nunn - Nov 15, 2019

In The Current Issue

Digital Human Helps Hearts

Hanna is the work of Marie Johnson, managing director at Centre for Digital Business in Australia, Chris Hillier, New Hanover Regional Medic...


MADE: Mounting An Expansion

Grunt Tough is a software and traditional manufacturing company; products are made and distributed out of its Wilmington facility....


Habitat Chief Leads The Way Home

Steve Spain has spent much of his professional life combating homelessness. Heading into his seventh year as executive director of Cape Fear...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

August 26, 2019 Power Breakfast: A Healthy Sale?
WILMA's Leadership Accelerator
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`