Put a pile of money on the table before thousands of retirees from two major carmakers. Will they grab it or stick with a regular monthly check?
Some white-collar General Motors retirees have until July 20 to decide if they want a payout of $300,000 or $500,000 or so. Some experts say offers to blue-collar retirees could be next.
Warning: This could be the start of something new for retirees across the country.
Financial advisers everywhere are watching how a significant lump-sum payout deal plays out with two big carmakers. Pension experts caution that many retirement-plan sponsors could be dangling lump-sum payouts in years ahead. The rules involving how lump-sum payouts could be calculated changed in 2012 — and some say employers could have more incentives down the road to limit their risks associated with managing pension plans.
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