We are committed to helping our employees through this transition.” We carefully weighed market trends and our strategic priority to improve our financial position with the impact to our employees. Kevin Cox, chief human resources officer at GE 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. GE’s pension plan has been closed to new entrants since January 1, 2012. GE will record a non-cash, pre-tax curtailment charge in the fourth quarter of 2019. There is no change for GE retirees already collecting pension benefits or employees with production benefits. Supplementary Pension benefits for approximately 700 employees who became executives before 2011, effective January 1, 2021. GE Pension Plan for approximately 20,000 employees with salaried benefits, and U.S. GE Pension Plan & Supplementary Pension Freeze: GE will continue to evaluate further options to reduce leverage and strengthen its balance sheet.ġ. The Company is on track in its deleveraging plan and continues to expect to make significant progress toward its leverage goal of <2.5X Net Debt to EBITDA by the end of 2020, inclusive of the impact of the current interest rate environment. In total, the actions announced today are expected to reduce GE’s pension deficit by approximately $5-8 billion and Industrial net debt by approximately $4-6 billion*. Offering a limited time lump-sum payment option to ~100,000 eligible former employees who have not started their monthly U.S. Pre-funding approximately $4-5 billion of estimated minimum ERISA funding requirements for 20.ģ. Supplementary Pension benefits for approximately 700 employees.Ģ. retirement benefits as part of its strategic priority to improve its financial position:ġ. October 7, 2019, BOSTON - GE (NYSE:GE) announced today that it is taking three actions related to its U.S. GE’s pension plan has been closed to new entrants since 2012 today’s actions more closely aligns GE benefits with current industry standards and competitive market practices.Expected to reduce GE’s pension deficit by approximately $5-8 billion and net debt by approximately $4-6 billion* in total, along with $5 billion debt tender, GE has announced approximately $9-11 billion in net debt reduction actions in last month.Multiple changes represent sizable step in Company’s deleveraging plan.Expects to reduce GE’s pension deficit by approximately $5-8 billion
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