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GE Freezes Pensions for 20K, Trimming up to $6B in Debt

Associated Press

   NEW YORK - General Electric is freezing the pension plans of about
   20,000 of its workers and offering pension buyouts to 100,000 former
   employees as it attempts to slash debt.

   The industrial conglomerate has been selling off assets and
   streamlining its operations amid sagging profits and other negative
   developments in recent years. It faces approximately $54 billion in
   industrial net debt. Whittling that down has become a priority for CEO
   Larry Culp.

   The Boston company said Monday that its actions would trim its pension
   deficit by about $5 billion to $8 billion, and net debt by about $4
   billion to $6 billion.

   "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," said Kevin Cox, chief human resources officer at GE, in a
   prepared statement. "We carefully weighed market trends and our
   strategic priority to improve our financial position with the impact to
   our employees. We are committed to helping our employees through this
   transition."
   

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