General Motors Hourly-Rate Employees Pension Plan

The plan is moderately funded (77%). $739M in assets back $959M in projected obligations, leaving $220M to close through future contributions and investment returns.

General Motors Hourly-Rate Employees Pension Plan is a corporate pension plan sponsored by General Motors — a single-employer defined-benefit plan governed by ERISA and insured by the Pension Benefit Guaranty Corporation (PBGC). Corporate plans peaked in U.S. usage in the 1980s and have been in steady decline since, mostly replaced by 401(k) plans. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.

The plan is mid-sized: $739M in assets, 11,395 participants (738 active, 7,873 retired). Mid-sized plans often outsource investment management to institutional advisors and follow standard actuarial conventions. Participant mix skews toward retirees (7,873 retired vs 738 active) — a mature plan paying out more than it accrues. Mature plans need stable investment returns plus sponsor contributions to keep the funded ratio steady; the cash-flow profile is increasingly net-negative. Annual cash flows: $1.5B in sponsor contributions versus $5.2B in benefit payments. Investment performance over the most recent year ran 7.2%, against the plan's assumed long-term return of 5.5%.

PBGC risk classification: moderate. The plan's funded status puts it under enhanced monitoring but not active intervention. Corporate ERISA plans like General Motors Hourly-Rate Employees Pension Plan carry PBGC insurance, which guarantees retiree benefits up to a federally-set maximum even if the sponsor defaults. The guarantee is meaningful but capped — high earners may see benefit haircuts in a termination scenario.