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GE freeze pensions for about 20,000 stock workers



Stocks of General Electric Co.

GE, -1.61%

rose 2.6% in premarket trading on Monday after an industrial conglomerate said it was freezing a US pension plan for about 20,000 wage earners and additional retirement benefits for 700 employees. GE said there will be no change for retirees who are already collecting retirement benefits; pension plan closed for new entrants since 2012. The company said it would offer a limited lump sum payment to approximately 100,000 former employees who have not yet started their monthly retirement benefits. GE stated that it pre-finances approximately $ 4 billion to $ 5 billion of minimum ERISA funding requirements [Employee Retirement Income Security Act] for 2021

and 2022. GE said retirement changes are part of its plan, which is expected to reduce the pension deficit by $ 5 billion to $ 8 billion and net debt by $ 4 billion to $ 6 billion. GE shares have fallen 32.4% over the last 12 months, while the Dow Jones Industrial Average

DJIA, + 1.42%

scored 0.5%.


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