General Motors Retirement

Last Updated on January 15, 2024 by Ben

General Motors Retirement

General Motors is one of the biggest automakers in the world. General Motors was founded in 1908 and became a publicly-traded company in 2010. They have had many accomplishments throughout their lifetime.


ahg top banner

General Motors Supplemental Agreement Pension Plan

The General Motors Hourly-Rate Employees Pension Plan was created as a result of an agreement between the Union and Motors Liquidation Company, which the MLC Board of Directors authorized. They became the sponsor of the Plan as part of its purchase of substantially all of MLC’s assets under a Master Sale & Purchase Agreement, which the Bankruptcy Court approved for the Southern District of New York.

Eligibility for Retirement and Amount of Pensions

Normal Retirement

Employees who have to attain the age of 65 and who leave active service are entitled to a pension calculated on their accumulated years of service. Any person who wishes to continue working full-time for General Motors LLC beyond age 65 will be informed. While such a person is entitled to a regular retirement benefit at age 65, that benefit will be suspended and not paid until such a person works for the Company after age 65.

Early Retirement

Employees who are age 60 but not age 65, and have ten or more years of credited service, may retire at their choice.

The employee may retire an employee who has reached the age of 55 but not 60 and whose combined years of age and credited service (to the nearest 1/ 12 in each case amount to 85 or more.

An employee may retire at the option of the employee if they have 30 or more years of credited service.

Those who have worked for ten years with at least ten years of credited service are between the ages of 55 (50 for someone laid off owing to a plant closing where no other Company facilities are located in the same geographical location). Those age 65 may be retired under mutually acceptable terms as defined herein.

Total and Permanent Disability Retirement

A person who is completely and permanently disabled prior to reaching the age of 65 and has at least IO years of credited service shall be eligible for a disability pension as follows. An individual who is not an employee with seniority is not eligible to apply for total and permanent disability retirement.

Only if the employee is not part of regular employment or profession for remuneration or profit (except to obtain rehabilitation or work necessary to avoid a reduction or termination of Worker’s Compensation benefits under state law) and on the basis of medical evidence acceptable to the Company, shall they be considered totally and permanently disabled.

The employee is discovered to be totally and permanently prevented from participating in regular employment or work at their plant due to their disability. The majority of disabled veterans are entitled to various benefits, such as VA loans and insurance through TRICARE. However, if the disability occurred while serving abroad, those may not apply since non-occupational reasons like traffic accidents on-duty time (involving injury) at places other than work locations do not qualify.

At any time during retirement before age 65, a disabled pensioner may be required to undergo a medical examination to determine whether the pensioner is still eligible for continuation of the disability payment.

If the company determines that you are no longer disabled, or if your employment is solely for purposes of rehabilitation and it will not reduce or eliminate worker’s compensation benefits under state law, then they’ll stop giving you disability payments. If you decline to be examined by a doctor, these financial benefits will be canceled until you submit, at which point the process may continue in accordance with Company policy on terminations due to an employee being unable to do his job duties without assistance owing to disability or injury.

Employees who retire after reaching age 65 are reclassified to normal retirement.

Amount of Pensions

Each monthly pension paid to an employee who has retired will be a basic benefit every year of credited service that the worker had at the time of retirement. The percentage of the cost pertaining to each product will be determined by the relevant Benefit Class Code and will be based on the month for which payment is being made.

The monthly pension payment to an employee who retires at the employee’s option on a date chosen by the employee shall be multiplied by a percentage as determined in the following:

If an employee:

  • (i) With 30 or more years of service under your belt, you may choose to retire at any time. or
  • (ii) If a total of 85 or more retirees have been credited to the employee’s record within their combined years of age and credited service (to the nearest 1/12 in each case). Plus, in a year, the primary monthly benefits or else payable to such employee after 62 years of age and one month shall be redetermined without any such reduction.

The monthly basic benefit will not be reduced below a level that ended in the early retirement paid to a participant in such a month exceeding the old-age insurance benefits, which have been reduced due to age.

In addition, a temporary benefit for each year of credited service up to 30 will be paid in addition to the monthly basic pension, which will be granted if an employee retires under mutually acceptable conditions or is totally and permanently disabled.

The monthly temporary benefit agreed on above shall continue to be paid until the individual reaches age 62 or could have attained Social Security retirement eligibility, whichever is longer. At such age, the monthly temporary benefit will no longer be provided.

Any monthly pension benefit or else payable to the employee at retirement, or earlier retirement, will be lowered by the value of any previous and future benefits paid or payable to another payee under a Qualified Domestic Relations Order of l.R.C. The Actuarial Value will be applied to determine any amount paid to any such payee(s), if applicable, and the employee’s remaining benefit entitlement.

Pension Benefits to Employee’s Surviving Spouse

An employee who retires under the nom1al, early, or total and permanent disability retirement provisions will receive a monthly benefit instead of the basic payment that would have been paid.

Those who break seniority and qualify for a deferred pension under the terms will be deemed to have automatically accepted basic benefits automatically to ensure that the designated spouse shall survive the employee’s death after such an election has become effective. The spouse of an employee who survives the employee shall be paid a survivor benefit starting on the first day of the month after the employee’s death and continuing until the end of their own further life.

Unless the Company or an impartial Umpire under a collective bargaining agreement determines that the termination should not result in compensation if an employee retires before becoming ineligible for benefits and within five years of the last day worked for the Company, he will receive, in addition to the pension.

Special Benefit

A former employee, or a surviving spouse, who is age 65 or older, or under age 65 and enrolled in the optional “Medicare” coverage offered by the Federal Social Security Act through voluntary contributions of money (in either case excluding spouses of former employees who received deferred vested pensions). Suppose you are receiving a monthly benefit under which began prior to October 1, 1979, and your Medicare Part B premium has increased since that date. In that case, the amount of the special benefit will be equal to the lesser of the new Medicare Part B premium or $76.20 for months beginning on or after January 1, 2004.

ahg mid banner


Trust Fund

The Company or the Named Fiduciary for purposes of investing Plan assets shall enter into a trust agreement with a trustee or trustees appointed by the company to administer and run the pension fund. To receive, maintain, and disburse such contributions, interest, and other income as may be required to pay much of the pensions and supplements or portions thereof under this Plan that is an insured fund does not cover. The Company or the Named Fiduciary for the purpose of investing Plan assets may establish an insured fund with any such insurance company or companies it chooses for the payment of such benefits under this Plan as are not covered by a trusted fund.

If the Company or a Named Fiduciary is establishing a trust, it will choose the form and terms of any such trust agreement that allows for the inclusion of obligations and stock (common and preferred) of the Company and its wholly-owned subsidiaries in the pension fund’s investments.

This provision may utilize any investment manager defined under the Employee Retirement Income Security Act of 1974 or rules. It may modify any such trust agreement at any time to achieve the objectives of this Plan. It also has the authority to remove and replace trustees, as well as change insurance providers.


  • The Company shall make such payments to the trustee or pay such premiums for insurance contracts in order to keep the Plan and pension or insured fund in good condition, as required by accepted actuarial principles and Title l of the Employee Retirement Income Security Act of 1974, and shall cover associated costs.
  • The Company may charge to the plan administration and investment of money costs, including the direct cost of benefits administration performed by, or on behalf of, the Company for the Plan and Pension Benefit Guaranty Corporation premiums for participants.
  • No employee is required to make any payments into the Plan.


The Company has no interest in any of the trustee’s contributions, and none of the pension or insured fund may revert to it, except that such contributions might revert to the Company after payment of all plan liabilities.

In the event of a termination of the Plan, all benefits and supplements under the Plan shall be limited to what may be provided by the assets of the pension fund or any other insured fund, and there shall be no liability or obligation on behalf of the Company to make any further payments to the trustee or insurance company in such case.

The responsibility for paying pension benefits or supplements under the Plan shall be limited to the Employees, Officers, Directors, and Stockholders of the Company. Other than as required by the Employee Retirement System, none of them will be held liable for payment of pension benefits or supplements.

Pension Benefits and Supplements

Pension and Supplement Payments

Pensions and supplements shall be paid on a monthly basis and shall begin not earlier than 30 days after receipt of the properly written explanations regarding distribution choices, provided that an employee can affirmatively opt to start a pension and supplement payments before such 30 days (but not less than seven days) have passed.

When an employee’s pension for total and permanent disability is paid, the first monthly payment shall be due at the start of the month following the month in which they retire, and it will be payable monthly thereafter until their death.

The monthly pension for total and permanent disability calculated according to the provisions shall be paid whenever the pensioner is otherwise eligible for such benefits. Such payments will begin at a later date, as follows:

  • At the start of each month, which includes the date when the required proof of disability is received by the Company, or
  • The first day of the month, which covers the date on which the employee was fully and completely disabled for at least five months.
  • On the first day of the third month after the date on which the required proof of disability is received by the Company, or
  • The third-party disability evaluation established by the disinterested clinic when an employee is deemed totally and permanently disabled will be considered.

Retention of Deferred Pension if Separated

Anyone who loses accrued credited service and is not yet retired and eligible for pension payments will be able to receive a delayed pension if such employee has at least five years of credited service at the time of detachment or such employee meets the “service” requirements.

Non-Alienation of Benefits

The pension fund shall not be responsible or subject to the debts or liabilities of any employee, separated employee, a retired employee, pensioner, or surviving spouse in any manner.

The right, benefit, pension, or supplement under the Plan shall never be subject to sale, transfer, assignment, pledge, or encumbrances of any sort. Transfer, sale, assignment, pledge, or encumbrances of any sort are limited to those permitted by rules established in accordance with l.R.C. Section 414(p).

Any attempt to, or success in, alienating, selling, transferring, assigning, pledging, or otherwise encumbering accrued rights, pensions, benefits, or supplements under the Plan or any part thereof. If any of these benefits would have been provided or enjoyed by someone else, but because of bankruptcy or some other event, they are no longer available.

GM may terminate the benefit of any such employee, pensioner, or surviving spouse at any time and instruct the trustee to keep or apply it to or for the benefit of such employee, pensioner, or surviving spouse, as well as their spouses, children, relatives, or other dependents. However, it must be emphasized that any pensioner or surviving spouse receiving a monthly benefit under the Plan is entitled to this extra amount.

Funding Based Restrictions

If the Adjusted Funding Target Attainment Percentage of the plan is less than 80 percent, it adjusts its funding target for this year. However, it does not have to be less than 60% against any other stipulation of the Plan. If the Plan’s adjusted funding target attainment percentage for a Plan Year is less than 80 percent but not less than 60 percent, a restriction shall apply.


This Plan is subject to change, modification, suspension, or termination by the action of the Board of Managers for General Motors LLC at any time. Except as required by the IRS for purposes of qualifying and deducting expenses under Sections 40 I. 404. and 50 I (a) of the Internal Revenue Code, you may not sell or exchange them for money or other items of value.

As long as any applicable collective bargaining agreement is still in effect, the company will respect employees’ rights to participate and benefits under their agreements. No such action shall work to recapture for General Motors LLC any contributions formerly made to the trustee or insurance company under the Plan.

Excluding the extent necessary to meet the requirements of the Internal Revenue Service or any other governmental authority. To affect the pensions or supplements of employees adversely already retired or the trust fund or insured fund then protecting such pensions and supplements. Further, no such action can reduce or eliminate a Participant’s accrued benefits as of the date the amendment is adopted. and all of a Participant’s accrued benefits shall become nonforfeitable in the event of a Plan termination or partial termination

ahg top banner


General Motors is one of the most successful and well-known car manufacturers in the world. They are committed to providing their employees with a secure future. That’s why they offer their workforce a Retirement Program that provides employees who are eligible for retirement benefits with early access to them in order to help ease the transition into retirement.

Scroll to Top