As of Dec. 1, General Electric Co. is increasing its pension benefit payments to 130,000 retirees.
In a prepared statement, GE CEO Jeffrey Immelt indicated the program is designed to provide the largest benefit to those who have been retired the longest period of time, and who presumably have the greatest need. Retired GE executives are not eligible for this increase.
Pension increases will go to those who retired directly from Fairfield-based GE before June 2, 2003, with increases based on pensioners”™ years of retirement and length of pension service. For many of those who retired prior to 1993, increases will range between 10 percent and 20 percent.
Also eligible for the increase are many pensioners who left GE before retirement with 25 or more years of pension-qualifying service and who started their pension before that date.
Surviving spouses of deceased eligible pensioners will also receive improvements.
At the end of 2006, the GE Pension Plan covered 530,000 total participants, according to the Coordinated Bargaining Committee of General Electric Unions, including 210,000 retirees and beneficiaries; 135,000 active employees; and 185,000 former employees with vested rights to future benefits.
The union estimates GE”™s pension plan currently covers 32 percent of a retiring employee”™s annual wage on average.
In separate GE news, Evendale, Ohio-based GE Aviation announced $3.3 billion in orders at the Dubai Air Show in the United Arab Emirates last week.
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