Lede: Retirement security for workers is taking a huge hit as pension funds post big losses, but GM says its pension fund remains strong. Doug Cunningham reports.

By Doug Cunningham

Ironically the huge pensions fund at General Motors is actually in pretty good shape. But the 100 biggest company pension funds in the U.S. took a huge hit in October – losing a combined $120 billion in value according to consulting firm Milliman, Inc. This will mean potentially huge cash infusions into these funds in 2009 if they are to meet legal requirements for solvency. Miliman estimates $92 billion will need to be injected into these top 100 funds during 2009 to keep them afloat. This could lead to some pensions being frozen, which means workers take a real hit. At GM Nancy Everett, CEO of GM Asset Management, told the New York Times the GM pension fund remains viable despite the economic shocks we’re enduring. GM changed the asset allocation of its fund several years ago, with just 26 percent of it now in stocks. In 2003 GM sold more than $14 billion in bonds, putting the proceeds into the fund. It also put proceeds from its sale of
Hughes Electronics – about $18 billion into the pension fund. As a result, GM says it has enough money in its pension fund to continue paying its 400,000 retirees for many years to come.