General Motors 2012 Annual Report Download - page 127

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
OPEB Contributions
The following table summarizes contributions to the U.S. OPEB plans (dollars in millions):
Years Ended December 31,
2012 2011 2010
Employer contributions ............................................................... $432 $426 $651
Plan participants’ contributions ......................................................... 4 13 53
Total contributions ................................................................... $436 $439 $704
For the year ended December 31, 2011 we also contributed $1.9 billion to the independent HCT consisting of restricted cash of $0.8
billion and notes payable of $1.1 billion.
Defined Contribution Plans
We have a defined contribution plan for eligible U.S. salaried employees. This plan provides discretionary matching contributions
which we instituted in October 2009. U.S. hourly employees hired after October 1, 2007 also participate in a defined contribution
plan. Contributions are also made to certain non-U.S. defined contribution plans.
The following table summarizes our contributions to defined contribution plans (dollars in millions):
Years Ended December 31,
2012 2011 2010
Total contributions ................................................................... $352 $297 $241
Significant Plan Amendments, Benefit Modifications and Related Events
U.S. Salaried Defined Benefit Pension Plan
In January 2012 we amended the salaried pension plan to cease the accrual of additional benefits effective September 30, 2012.
This amendment resulted in a curtailment which decreased the pension liability and decreased the net pre-tax actuarial loss component
of Accumulated other comprehensive loss by $309 million. Active plan participants receive additional contributions in the defined
contribution plan starting in October 2012.
In August 2012 the salaried pension plan was amended to divide the plan to create a new legally separate defined benefit plan
primarily for active and terminated vested participants. After the amendment the original salaried pension plan (Retiree Plan) covers
the majority of retirees currently receiving payments. As a result of this amendment a remeasurement of the Retiree Plan on August 1,
2012 increased the pension liability and the net pre-tax actuarial loss component of Accumulated other comprehensive loss by $654
million, due primarily to a decrease in the discount rate from 4.21% to 3.37% on a weighted-average basis, partially offset by actual
asset returns in excess of expected amounts.
In August 2012 lump-sum distributions of $3.6 billion were made from the Retiree Plan to 12,500 plan participants resulting in a
partial plan settlement necessitating a plan remeasurement for the Retiree Plan on August 31, 2012. The settlement resulted in a pre-
tax loss of $54 million. The effect on our financial condition was insignificant.
In November and December 2012 the Retiree Plan purchased group annuity contracts from an insurance company and paid a total
annuity premium of $25.1 billion and the Retiree Plan settled two other previously guaranteed obligations, with separate insurance
companies, totaling $1.9 billion. These agreements unconditionally and irrevocably guarantee the full payment of all annuity
payments to the participants in the Retiree Plan and assume all investment risk associated with the assets that were delivered as the
annuity contract premiums.
General Motors Company 2012 ANNUAL REPORT124