General Motors' bankruptcy filing Monday was expected, but the news is still unsettling for the automaker's thousands of employees, especially those close to retirement. Here are some answers to questions about what the filing means for retirement benefits.

Q: What will happen to GM's retirement plans?

A: In the short term, nothing. In a statement, GM said it plans to maintain its employee benefit plans, such as pensions and health care. GM also pointed out that the assets in its pension plan are protected by federal law from claims by creditors. That means the company can't use funds from its pension plan to meet its obligations or pay its debts.

Likewise, contributions to GM's 401(k) plan are held in a trust established on behalf of plan participants. Employees' savings, along with matching contributions, don't belong to GM and are off-limits to creditors, the company said.

Q: Will the government take over GM's pension plan?

A: Not in the near future, but it's still possible. Currently, GM's pension plan is underfunded by $20 billion, says Douglas Elliott, an economics fellow at the Brookings Institution. The restructured company will need to use some of its operating profits to close the gap, he says. If those profits fail to materialize, the company could end up filing for a second bankruptcy and transferring its pension obligations to the Pension Benefit Guaranty Corp., Elliott says. The PBGC is a federal agency that insures defined pension plans.


Q: If the PBGC takes over my pension, will I still get all my benefits?

A: Not necessarily. The PBGC insures pensions up to limits established by law. For plans terminated in 2009, the maximum guaranteed amount for workers who retire at age 65 is $54,000 annually. The limits are lower for workers who retire before they're 65. "The earlier the retirement, the lower the guaranteed amount from the PBGC," Elliott says.

Q: What about other retiree benefits for salaried employees?

A: In a statement, GM said it is working with the Treasury to reduce some retiree benefit obligations by roughly two-thirds. Those reductions will affect life insurance and health care coverage for salaried retirees, among other things, the company said.

Q: How can I find out more?

A: GM employees and retirees can call 800-489-4646. The PBGC also has information on its website, www.pbgc.gov.