GM offers lump-sum buyout of pensions

42,000 salaried workers eligible; will reduce liabilities by $26B

General Motors Co. said Friday it will offer lump-sum pension buyouts to about 42,000 salaried retirees and offload its salaried retiree pensions to Prudential Insurance Co. of America — moves that will reduce its pension liability by $26 billion.

The announcement follows a similar offer from Ford Motor Co., which said Thursday it will offer pension buyouts to 98,000 qualifying white-collar retirees and former workers.

GM salaried retirees who are offered the lump-sum choice have until July 20 to make a decision. Payouts will come in September for those who take it. The lump sum payment will be based on factors including age, years of employment and current pension amount.