GM to slice executive pension plans by two-thirds

Senior executives at General Motors have become accustom to cushy pension plans, but the Detroit automaker will use it Chapter 11 bankruptcy filing to reduce senior executive pension plans by as much as 66 percent. GM CEO Fritz Henderson revealed the news late last week.

The pension cuts will apply to retired executives still making over $100,000 per year. Chrysler made similar revisions to its executive pension plans while in bankruptcy, and even opted to leave some plans in bankruptcy with the "˜bad' Chrysler.

Despite the planned cuts, no decision has yet been made on former GM CEO Rick Wagoner's compensation. During his 31 years at GM Wagoner racked up more than $20 million in pension benefits, but it remains to be seen just how much of that he will receive.

"That issue is still being reviewed by the board of directors and the compensation committee," Henderson told Automotive News. "I'm not involved in this." However, Henderson does have a board seat.

A decision on Wagoner's pension likely won't be made until closer to GM's emergence from bankruptcy.