General Motors (GM) plans to contribute approximately $4 billion in cash and $2 billion in GM stocks to its $85.9 billion U.S. pension plans.

This move is part of a larger plan by the company to reduce its overall dept by $11 billion.

The automaker said the stock contribution was contingent upon a review from the U.S. department of labor. The number of shares contributed would be determined based on the public offering price for GM’s common stock.

The stock contribution will be valued as a plan asset for pension funding purposes at the time of contribution and for balance sheet purposes when the shares become fully transferable.

The company also repaid $2.8 billion to the United Auto Workers Retiree Medical Benefits Trust, a voluntary employee beneficiary association for members of the United Auto Workers.

GM emerged from Chapter 11 bankruptcy protection in July 2009. 

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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