GM's own auditors doubt the survival potential of the auto giant. What's more, GM concedes that on top of money to cover operations, it needs to make $12.3 billion in pension contributions by 2014. Is GM the looming iceberg that will sink the already swamped Pension Benefit Guaranty Corporation (PBGC)?
Recently, GM Chief financial officer Ray Young said the company was "trying to understand what our options for pension funding are," according to the Detroit News.
One of those options is to fall back into the arms of PBGC.
The PBGC insures the retirement future of nearly 44 million people in more than 30,000 private-sector defined benefit pension plans. At last count, the Government Accountability Office (GAO) has the insurer firmly planted on its high risk list with a financial deficit estimated at over $13 billion.
