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GE freezing benefits for 20,000 salaried employees

The changes won't take effect until January 2021 so folks can collect their benefits until then.

LOUISVILLE, Ky. — General Electric is freezing pension benefits for 20,000 salaried employees nationwide.

The changes won’t take effect until January 2021 and employees can collect their benefits until then. The company also plans to pre-fund $4 to $5 billion of its estimated requirements for 2021 and 2022.

GE will offer some former employees a $100,000 buyout.

All of the new changes are expected to reduce their pension deficit by $5 to $8 billion.

This freeze does not affect employees at Appliance Park. The president of the IUE-CWA local 83761 released a statement:

"The recent announcement from General Electric on the pension freeze does not impact workers here at Appliances Park, their pensions were frozen upon the completion of the sale to Haier in 2016.

Around 1,000 workers who are not 60 or are not drawing their pensions will be asked if they want a lump sum buy out or wait until 60 and draw their monthly pension.

This does not affect anyone that is currently drawing a GE pension."

RELATED: GE announces layoffs within IT department, nearly 40 affected

RELATED: GE replaces CEO John Flannery; shares rise 15 percent

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