US - Fitch rating has downgraded General Motors (GM) citing fears over the impact of impending new pension legislation.
Fitch made the downgrade, from BB to B+, primarily due to concerns over further financial support and/or costs that GM may incur in order to ensure that Delphi is able to reach an agreement with the UAW.
However Fitch also cited concerns regarding any new pension legislation that could force a re-calculation of GM's liabilities and/or higher required contributions.
Fitch said in a release it would montitor whether GM needed to make concessions “or higher pension contributions in order to facilitate the sale of a majority interest in General Motors Acceptance Corporation.”
The US government is looking into modifying regulations relating to corporate defined benefit pension plans which could include significantly more onerous payments to the Pension Benefit Guaranty Corporation (PBGC).
Although the proposals have yet to be approved by Congress, they could see payments to the PBGC by plan sponsors take into account an entity's credit quality and credit rating.
The current PBGC rules do not distinguish between entities of varying credit ratings.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.