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At Least 3,000 GM Workers Face Layoffs

December 5th, 2018 | Leave a comment.

General Motors hoped at least 7,000 white-collar workers would sign up for a buyout offer, but managers told employees that it was likely to fall short, raising the prospect of significant layoffs.

The number volunteering for the offer is likely be closer to 4,000 based on estimates by an actuary.

That means 3,000 or more salaried workers in North America could be terminated starting in January if the automaker in fact opts for forced job cuts, which it has said it would consider if buyouts fell short.
Source – 62 CBS Detroit

What you need to know!

General Motors Retirement Savings Plan for Salaried Employees in the United States is a defined contribution plan with a 401k feature. This plan has a BrightScope Rating of 87.  For the average 401k participant, the 3 point difference between this plan’s BrightScope Rating (87) and the top rated plan (90) could equate to 2 years of additional work and/or $58,631 in lost savings.

The plans administrator is Kevin Cobb and is handled in Detroit, Michigan.

One of the key concerns is that the plan only has 33 investment options to choose from which is common for most 401k type plans.

Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.

With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.

For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.

Wishing you the best.

Doug Reed, CRPC, AAMS

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