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General Electric this month said it will halt the pensions for about 20,000 of its U.S. salaried workers as the mega corporation seeks to cut its pension deficit by about $5 billion to $8 billion.

GE retirees who now collect pension benefits will not be impacted. The pension freeze takes effect January 1, 2021. Also on that date, GE will pitch in 3% to its 401(k) plan and match contributions of 50% on up to 8% of eligible compensation. The firm’s once generous pension plan has been shut off to new employees since January 1, 2012.

"Returning GE to a position of strength has required us to make several difficult decisions, and today’s decision to freeze the pension is no exception," says Kevin Cox, chief human resources officer. “We carefully weighed market trends and our strategic priority to improve our financial position with the impact to our employees. We are committed to helping our employees through this transition.”

Read the full press release.

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