Reference no: EM132380429
Question
Late in 2018, General Motors (the huge auto company) announced that it was closing 5 manufacturing facilities, laying off 14,000 employees.
Assume that all of those employees were participants in a defined benefit pension plan (they probably were) and that they all had 10 or more years of service.
Assume that the employee layoffs were completed in 2019. General Motors PBO was approximately $68 billion at the end of 2018.
Based only on the information provided in this question, what would you General Motors PBO to be at the end of 2019, after the layoffs?
Higher, lower, or about the same, and guess the amount. (The answer doesn't exist, so don't try to look it up, just give your answer based on the facts provided.)
As noted, General Motors PBO was approximately $68 billion at the end of 2018, at that same time what would you expect General Motors ABO to be? Give a number and explain your answer. (Again, the answer doesn't exist, so don't try to look it up.)