US - General Motors has contributed $2bn worth of shares to its US pension plans to complete a $6bn cash and shares funding plan.
The car manufacturer contributed 40.4 million shares to its hourly plan and 20.2 million shares to its salaried plan. It completes a $6bn contribution consisting of $4bn in cash and $2bn in stock first announced in October. The cash portion was paid to the fund in December. (Global Pensions: 02/12/10).
The contributed shares qualify as a plan asset for funding purposes immediately, and will qualify as a plan asset for accounting purposes once certain transfer restrictions are removed in the near-term, GM said.
The US funds, which provide benefits for about 688,000 members, were underfunded by $17.1bn as of December 31 2009.
"We continue to take the steps necessary to lower our risk profile, so our focus can be on designing, building and selling the world's best vehicles," said Chris Liddell, GM vice chairman and chief financial officer.
GM emerged from Chapter 11 bankruptcy protection in July 2009.
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