UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
FORM 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE
----ACT OF 1934
For the year ended December 31, 2007
-----------------
OR
TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE
----ACT OF 1934
For the transition period from to
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Commission file number 2-88284
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THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
------------------------------------------------
(Full title of the plan)
General Motors Corporation
300 Renaissance Center, Detroit, Michigan 48265-3000
------------------------------------------------------
(Name of issuer of the securities held pursuant to
the plan and the address of its principal
executive offices)
Registrant's telephone number, including area code (313) 556-5000
Notices and communications from the
Securities and Exchange Commission
relative to this report should be
forwarded to:
Nick S. Cyprus
Controller and Chief Accounting Officer
General Motors Corporation
300 Renaissance Center
Detroit, Michigan 48265-3000
1
FINANCIAL STATEMENTS AND EXHIBIT
--------------------------------
(a) FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE Page No.
-------------------------------------------------- --------
The General Motors Personal Savings Plan for
Hourly-Rate Employees in the United States:
Report of Independent Registered Public Accounting Firm 3
Statements of Assets Available for Benefits as of
December 31, 2007 and 2006 4
Statement of Changes in Assets Available for
Benefits for the Year Ended December 31, 2007 5
Notes to Financial Statements 6
Supplemental Schedule, Form 5500 Schedule H, Part IV,
Line 4i - Schedule of Assets (Held at End of Year)
as of December 31, 2007 15
All other schedules required by Section 2520.103-10 of the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 have been omitted because they are not applicable.
(b) EXHIBIT
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Exhibit 23 - Consent of Independent Registered Public Accounting Firm
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
The General Motors Personal
Savings Plan for Hourly-Rate
Employees in the United States
------------------------------
(Name of Plan)
Date June 26, 2008 By:
------------
/s/G. Richard Wagoner, Jr.
---------------------------------
(G. Richard Wagoner, Jr. Chairman
of the Board of Directors)
2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Plan Administrator of
The General Motors Personal Savings Plan
for Hourly-Rate Employees in the United States:
We have audited the accompanying statements of assets available for benefits of
The General Motors Personal Savings Plan for Hourly-Rate Employees in the United
States (the "Plan") as of December 31, 2007 and 2006, and the related statement
of changes in assets available for benefits for the year ended December 31,
2007. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Plan is not required to have,
nor were we engaged to perform, an audit of its internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Plan's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the assets available for benefits of the Plan as of December 31, 2007
and 2006, and the changes in assets available for benefits for the year ended
December 31, 2007 in conformity with accounting principles generally accepted in
the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets (held
at end of year) as of December 31, 2007, is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements, but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedule is the
responsibility of the Plan's management. Such supplemental schedule has been
subjected to the auditing procedures applied in our audit of the basic 2007
financial statements and, in our opinion, is fairly stated in all material
respects when considered in relation to the basic financial statements taken as
a whole.
/s/ DELOITTE & TOUCHE LLP
-------------------------
Deloitte & Touche LLP
Detroit, Michigan
June 25, 2008
3
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2007 AND 2006
2007 2006
------- -------
(dollars in thousands)
ASSETS:
Investment in General Motors Savings
Plans Master Trust (Note 4):
Investments, at fair value $8,214,311 $8,694,025
Loans 366,451 394,893
Employee contribution receivable - 4,526
--------- ---------
ASSETS AVAILABLE FOR BENEFITS
AT FAIR VALUE 8,580,762 9,093,444
--------- ---------
Adjustment from fair value to
contract value for interest in
common collective trusts relating
to fully benefit-responsive
investment contracts 110,444 (19,441)
--------- ---------
ASSETS AVAILABLE FOR BENEFITS $8,691,206 $9,074,003
========= =========
Reference should be made to the Notes to Financial Statements.
4
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2007 (dollars in thousands)
ADDITIONS:
Net investment gain from General
Motors Savings Plans Master
Trust (Note 4) $593,246
Employer contributions 2,613
Employee contributions 333,054
---------
Total additions 928,913
NET TRANSFERS IN (Note 5) 11,398
DEDUCTIONS-
Distributions to participants (1,273,418)
TRANSFERS OUT (Note 5) (49,690)
---------
NET DECREASE (382,797)
ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 9,074,003
---------
End of year $8,691,206
=========
Reference should be made to the Notes to Financial Statements.
5
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2007 AND 2006 AND
FOR THE YEAR ENDED DECEMBER 31, 2007
1. THE PLAN
Following is a brief description of the Plan that is provided for general
informational purposes only. Participants should refer to the Plan document
and prospectus for a complete description of the Plan's provisions.
GENERAL - General Motors Corporation (the "Corporation" or "GM") and certain
unions have established The General Motors Personal Savings Plan ("PSP") for
Hourly-Rate Employees in the United States (the "Plan"), a defined
contribution plan. Generally, eligible hourly-rate full-time and part-time
employees may participate and accumulate savings under the Plan on the first
day of the first pay period following the attainment of seniority, as defined
in the Plan. Except for purposes of investment of Plan assets, until June 30,
2006 the Investment Funds Committee of the Corporation's Board of Directors
acted as the Plan fiduciary and, along with various officers, employees, and
committees, with authority delegated from the Plan fiduciary, controlled and
managed the non-investment operation and administration of the Plan subject to
the provisions of the Employee Retirement Income Security Act of 1974, as
amended (ERISA). Effective June 30, 2006, State Street Bank and Trust Company
serves as the independent fiduciary and investment manager of the Plan for the
GM $1-2/3 Par Value Common Stock Fund. General Motors Investment Management
Corporation ("GMIMCO") is the named fiduciary of the Plan for purposes of
investment of Plan assets, with the exception (commencing on June 30, 2006) of
the GM $1-2/3 Par Value Common Stock Fund. This Plan is subject to the
provisions of ERISA.
EMPLOYER CONTRIBUTIONS - On September 26, 2007 General Motors Corporation
("GM") and the International Union, United Automobile, Aerospace and
Agricultural Workers of America (the "UAW") entered into a Memorandum of
Understanding - UAW-GM Entry Level Wage & Benefit Agreement (the "MOU") that
was negotiated in conjunction with the negotiation by GM and the UAW of a new
national collective bargaining agreement governing the wages, hours, and terms
and conditions of employment for UAW-represented employees ("2007 National
Agreement"). Under the terms of the MOU the parties agreed to provide a PSP
Corporation Contribution to certain employees hired on an after October 15,
2007, once seniority is attained. As such, GM automatically contributes to
each eligible employee's PSP account each pay period an amount equal to $1 per
hour for each eligible weekly-straight time hour worked, including hours
compensated for certain eligible time not worked ("Corporation contribution").
PSP Corporation contributions will be credited to an eligible employee's
account, regardless if the employee contributes to the Plan. The Corporation
contribution shall be invested in the current investment options as designated
by the employee. If the employee has not made an investment option election,
such employer contributions shall be invested in the Pyramis Strategic
Balanced Commingled Pool investment option.
PARTICIPANT CONTRIBUTIONS - An eligible participant employed by the
Corporation ("an Eligible Employee" or "employee") may elect to contribute to
the Plan as follows in accordance with provisions and within the applicable
Federal limits.
o On a pre-tax basis ("Deferred Savings"), an amount of Eligible Earnings
which is the lesser of (1)$15,500 for 2007 or (2) up to 60% for 2007 of
the Employee's Eligible Earnings for a calendar year.
o On an after-tax basis ("After-Tax Savings"), up to 60% for 2007 of an
Employee's Eligible Earnings as defined in the Plan.
6
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
o Eligible Employees have the opportunity to participate in the Roth
Savings feature on an after-tax basis. Participants may contribute up to
60% of an Employee's Eligible Earnings as defined in the Plan. Roth
Savings contributions are combined with Deferred Savings for purposes of
applying the $15,500 contribution limit for 2007.
o In lieu of receiving a distribution from The General Motors Profit Sharing
Plan for Hourly-Rate Employees in the United States, an Employee may elect
to have the Corporation contribute profit sharing payments, as Deferred
Savings to the extent permissible under tax law, up to 100%, in 1%
increments, of any such amount, which vests immediately.
o In lieu of receiving a Suggestion Award Payment from the Corporation, an
Employee may elect to have the Corporation contribute up to 100%, in 1%
increments, of their Suggestion Award Payment as Deferred Savings and/or
After-Tax Savings to the extent permissible under tax law.
o An Employee age 50 or older, or who will attain age 50 by the end of the
calendar year, is eligible to make catch-up contributions to his or her
account. A catch-up contribution may be made on a "pre-tax" or "Roth
after-tax basis up to the annual limit ($5,000 in 2007) set forth by the
Internal Revenue Service (the "IRS"), and only after a tax law limit has
been reached, such as the 401(k) annual contribution limit ($15,500 in
2007).
An Employee's contributions will be invested at the Employee's direction, in
10% increments, in any of the Plan's investment options. As such,
Participants are permitted to self-direct 100% of Employee contributions in
any of the Plan's investment options.
An Employee also may elect to combine the contribution methods disclosed
above (pre-tax, after-tax and Roth after-tax contributions), provided that
the sum of these contributions does not total more than 60% of Eligible
Earnings for any calendar year. The sum of the above described methods of
contributions are considered "employee contributions". Employee contributions
may only exceed 60% of Eligible Earnings by an amount equal to any
combination of (1) the payout under the Profit Sharing Plan, (2) the
Suggestion Award Payment, and (3) the catch-up contributions.
VESTING - Assets derived from employee contributions vest immediately upon
allocation to the employee's account.
FUND EXCHANGES - Subject to the excessive trading policy, participants may
generally exchange funds between investment options on any business day on
which the New York Stock Exchange is open ("Business Day"). The excessive
trading policy includes a monitoring process limit of one roundtrip
transaction per fund within any rolling 90-day period, subject to an overall
limit of four round-trip transactions across all funds in the Plan over a
rolling 12 month period. A roundtrip transaction occurs when an exchange into
and out of a fund option within a 30 day period is executed. Systematic
contributions and withdrawals (i.e. regular payroll deductions, loan
payments, hardship withdrawals) are permitted under the Plan and do not count
as exchanges under the excessive trading policy.
REDEMPTION FEES - From time to time, certain funds within the Plan may impose
a redemption fee if an investment is held for less than a stated period. If
applicable, these fees are disclosed in the individual mutual fund
prospectuses as well as the Plan prospectus which contains additional
information about each fund. The redemption fees are paid to the respective
funds and help protect the funds' shareholders by discouraging frequent
trading in response to or in anticipation of short-term market fluctuations.
7
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
PARTICIPANT LOANS - Participants may borrow once per year from their vested
pre-tax Deferred Savings, after-tax Roth Savings and after-tax Savings. The
amount and terms of the loans are limited under the Plan. The loan interest
rate will be established once each quarter at a rate equal to the prime
lending rate as of the previous quarter-end published by the Wall Street
Journal and will apply to all new loans issued during the quarter. Loan
repayments are generally made through after-tax payroll deductions and are
invested in the same investment options that the participant currently
selects for their savings contributions. Interest paid on a Plan loan is
credited back to the borrowing employee's account in the Plan. Partial and
total prepayment of loans is permitted at any time, without penalty. Loans
not repaid within the loan term are deemed to be distributions from
participant's accounts. The outstanding balances of participant loans amount
to $366 million and $395 million as of December 31, 2007 and 2006,
respectively.
PARTICIPANT WITHDRAWALS - Participants may withdraw Deferred Savings in
their accounts at any time after attaining age 59-1/2. Prior to age 59-1/2,
After-Tax Savings may be withdrawn at any time however; Deferred Savings may
only be withdrawn because of severance from employment, death, total and
permanent disability, or financial hardship. Prior to receiving a withdrawal
for financial hardship, a participant previously must have taken all
available asset distributions, withdrawals, and loans under all applicable
plans maintained by the Corporation. The amount that may be withdrawn for a
financial hardship is limited as defined in the Plan. The reason for a
hardship distribution must conform to conditions required by the IRS.
Effective January 1, 2006, a participant who receives a hardship withdrawal
shall have his or her contributions to the Plan suspended for 6 months
following the withdrawal. PSP employer contributions may only be withdrawn
following separation from GM employment.
PAYMENT OF BENEFITS - Upon severance from employment, a participant may elect
to leave his or her assets in the plan or take a distribution in accordance
with Plan provisions equal to the value of the participant's vested assets in
his or her account.
PLAN ADMINISTRATION - The Corporation pays certain costs of Plan
administration.
INVESTMENT OPTIONS - An Employee's contributions will be invested at the
Employee's direction, in 10% increments, in any of the investment options
available in the Plan.
Effective March 30, 2007, the following four common stock funds were removed
as investment options from the Plan. Any assets in these restricted funds as
of March 30, 2007 were transferred automatically to the Promark Income Fund.
o DIRECTV Group Common Stock Fund
o News Corporation Non-Voting Common Stock Fund
o Electronic Data Systems Corporation Common Stock Fund
o Raytheon Company Common Stock Fund
Effective after the close of business on June 29, 2007, the following changes
were made to the Plan:
o Certain investment options that were currently available in the Plan
were removed (old investment option).
o Certain new investment options were added (new investment option).
o The investment options that were removed are no longer available for
participant contributions, loan repayments or exchanges.
8
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
o Participants with account balances that were in the old investment
options (including contributions and loan repayments), were
transferred to new investment options, subject to the next sentence.
o Participants with account balances in the old investment options
that were removed but subject to short-term trading (redemption)
fees were transferred to other available investment options after
the relevant holding period expired.
o The Pyramis Strategic Balanced Commingled Pool investment option
became the default option for certain contributions and loan
repayments for participants who have not designated other available
investment options for those amounts.
DESCRIPTION OF THE COMPANY STOCK FUND:
GM $1-2/3 Par Value Common Stock Fund - Under this investment option, the
Trustee invests contributions primarily in General Motors Corporation's
common stock. Each unit represents a proportionate interest in all of the
assets of the GM $1-2/3 Par Value Common Stock Fund. The number of units
credited to each participant's account within an applicable plan will be
determined by the amount of the participant's contributions and the purchase
price of a unit in the GM $1-2/3 Par Value Common Stock Fund. The value of
each participant's account is determined each Business Day by the number of
units to the participant's credit, multiplied by the current unit value. The
return on a participant's investment is based on the value of units, which,
in turn, is determined by the market price of General Motors Corporation's
common stock, the amount of any dividends paid thereon, and by interest
earned on short-term investments held by each fund.
Each participant directs the Trustee how to vote common stock shares
allocated to his or her account. To the extent consistent with applicable
law, the Trustee will not exercise voting rights with respect to those shares
for which direction has not been received by the required deadline.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed in the preparation of the
accompanying financial statements are as follows:
BASIS OF ACCOUNTING - The financial statements of the Plan are prepared in
accordance with accounting principles generally accepted in the United States
of America.
USE OF ESTIMATES - The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, and changes therein, and disclosure
of contingent assets and liabilities. Due to the inherent uncertainty
involved in making estimates, actual results could differ from those
estimates.
RISKS AND UNCERTAINTIES - The Plan and master trust utilize various
investment instruments including U.S. government securities, corporate debt
instruments, and corporate stocks. Investment securities, in general, are
exposed to various risks, such as interest rate, credit, and overall market
volatility. Due to the level of risk associated with certain investment
securities, it is reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes,
could materially affect the amounts reported in the financial statements.
INVESTMENT VALUATION - The Plan's investments are stated at fair value,
except for benefit-responsive investment contracts, which are stated at
contract value. Fair values are calculated by reference to published market
quotations, where available; where not available for certain common
collective trusts, various bases, including cost, are used in determining
estimates of fair values. Contract value represents contributions and
withdrawals made under the investment contracts plus credited earnings, which
are net of expenses charged to synthetic contracts.
9
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
Security transactions are recorded on a trade-date basis. Investment income
is recognized as earned based on the terms of the investments and the periods
during which the investments are owned by the Plan.
PAYMENT OF BENEFITS - Distributions to participants are recorded upon
distribution.
3. INVESTMENTS
All of the investments in the Plan are held in the Master Trust as more fully
described in Note 4. All assets in the Master Trust are allocated to
individual participant accounts.
4. THE MASTER TRUST
The Corporation established the Master Trust pursuant to a trust agreement
between the Corporation and State Street Bank and Trust, as trustee of the
Plan assets, in order to permit the commingling of trust assets of multiple
employee benefit plans for investment and administrative purposes. The assets
of the Master Trust are held by State Street Bank and Trust.
Employee benefit plans participating in the Master Trust as of December 31,
2007 consist of the following:
o General Motors Savings-Stock Purchase Program for Salaried Employees
in the United States
o The General Motors Personal Savings Plan for Hourly-Rate Employees
in the United States
o The General Motors Income Security Plan for Hourly-Rate Employees
Each participating employee benefit plan has an undivided interest in the net
assets and changes therein of each of the Master Trust investment options in
which the respective plan participates.
The net investment income of the commingled Master Trust investment funds is
allocated by the trustee to each participating plan based on that plan's
interest in each commingled Master Trust investment fund, as compared with
the total interest of all the participating plans, in each commingled Master
Trust investment fund at the beginning of the month. For all other investment
options, the net investment income is separately earned by the respective
employee benefit plan, and is thus recorded separately in the accounting
records of the respective plan.
10
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
As of December 31, 2007 and 2006, the Plan had approximately a 42.3% and
42.8% interest in the Master Trust, respectively.
The net assets available for benefits of the Master Trust at December 31,
2007 and 2006 are summarized as follows (dollars in thousands):
ASSETS: 2007 2006
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Investments at fair value:
General Motors Corporation $1-2/3 Par
Value Common Stock $1,459,558 $1,915,259
Other common stock - 383,045
---------- ----------
Total common stock 1,459,558 2,298,304
Promark Income Fund 6,601,826 6,636,266
Promark Large Cap Index - 1,652,398
State Street Global Advisors Large Cap Index 1,634,057 -
Other common collective trusts 3,068,862 1,813,938
---------- ----------
Total common collective trusts 11,304,745 10,102,602
Mutual funds 6,970,683 8,240,383
Loan funds 566,613 605,630
---------- ----------
Total investments at fair value 20,301,599 21,246,919
Receivables - accrued investment income - 4
---------- ----------
Total assets $20,301,599 $21,246,923
========== ==========
LIABILITIES-
Due to broker for securities purchased - 2,855
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS
AT FAIR VALUE $20,301,599 $21,244,068
========== ==========
Adjustment from fair value to contract value for
interest in common collective trusts relating
to fully benefit-responsive investment contracts 227,376 (38,521)
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $20,528,975 $21,205,547
========== ==========
11
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
The net investment gain of the Master Trust for the year ended December 31, 2007
is summarized as follows (dollars in thousands):
Interest and dividends $598,828
Net appreciation (depreciation) in fair value of
investments:
General Motors Corporation $1-2/3 Par Value
Common Stock (269,089)
Other common stock (13,989)
Mutual funds 486,809
Common collective trusts:
Promark Income Fund 371,096
Promark Large Cap Index 110,629
State Street Global Advisors Large Cap Index (22,333)
Other common collective trusts 112,687
----------
Total net appreciation 775,810
----------
Total net investment gain $1,374,638
==========
5. TRANSFERS
On April 12, 1999, the GM Board of Directors approved the complete separation
of Delphi by means of a spin-off, which was completed on May 28, 1999. Prior
to the spin-off, GM established the Delphi Personal Savings Plan (the "Delphi
Plan"), modeled after the GM Plan. On May 28, 1999, for those employees who
elected to do so, assets representing Delphi participants' holdings in the
Plan were transferred and reinvested under the corresponding investment
options in the Delphi Plan. As a result of the separation, the Delphi Plan
was separated from the Plan, and is now administered by Delphi as a separate
plan. On a very limited basis, participants may elect to transfer their
holdings between the Delphi and GM Plans. The amount of the transfers from
the Delphi Plan to the Plan were $16 million and are recorded as transfers
in, in the statement of changes in assets available for benefits.
Effective August 7, 2007, GM sold Allison Transmission ("Allison"), a
commercial and military equipment business to The Carlyle Group and Onex
Corporation ("Purchasers"). In connection with the sale, Purchasers
established the Allison Transmission Hourly Employee Retirement Savings Plan,
a defined contribution plan (the "Allison Plan"). The transaction resulted in
a voluntary elective transfer of account balances into the Allison Plan. For
those participants that did not elect the voluntary elective transfer, their
account balances remained in the Plan. The amount of the voluntary elective
transfer totaled approximately $49.7 million and is recorded in transfers out
in the statement of changes in assets available for benefits.
6. TERMINATION
Although it has not expressed any intent to do so, the Corporation has the
right to terminate the Plan subject to the provisions of ERISA. Such Plan
termination, if any, would not affect a participant's interest in assets
already in the Plan.
7. FEDERAL INCOME TAX STATUS
By letter dated August 15, 2005, the IRS has determined and informed the
Corporation that the Plan is a tax-qualified employee benefit plan, meeting
the requirements of Sections 401(a) and 401(k) and 4975(e) (7) of the
Internal Revenue Code of 1986, as amended (the "Code"), and the Trust
established there under was determined to be exempt from United States
Federal income taxes under Section 501(a) of the Code. The Plan's management,
fiduciary, and tax counsel believe that the Plan is designed and currently
being operated in compliance with the applicable requirements of the Code,
and therefore no provision for income taxes has been included in the Plan's
financial statements.
12
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
8. RELATED PARTY TRANSACTIONS
The Plan and Master Trust enter into certain related party transactions.
These generally include investments with trustees, fund managers, the
Corporation and its subsidiaries. Such transactions are within the scope of
the investment guidelines.
9. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
financial statements to the Form 5500 (dollars in thousands):
December 31, December 31,
2007 2006
----------- ------------
Assets available for benefits per the
financial statements $8,691,206 $9,074,003
(Less) Add: Adjustment from contract value
to fair value for interest in common
collective trusts relating to fully
benefit-responsive investment contracts (110,444) 19,441
--------- ---------
Assets available for benefits per the
Form 5500 $8,580,762 $9,093,444
========= ========
The following is a reconciliation of total net investment gain from the General
Motors Savings Plan Master Trust per the financial statement to the Form 5500
(dollars in thousands):
December 31,
2007
------------
Total net investment gain from the General Motors
Savings Plan Master Trust per the financial statement $593,246
Less: Adjustment from contract value to fair value for
fully benefit-responsive investment contracts as of
December 31, 2007 (110,444)
Less: Adjustment from contract value to fair value for
fully benefit-responsive investment contracts as of
December 31, 2006 (19,441)
---------
Total investment gain per the Form 5500 $463,361
=========
10. SUBSEQUENT EVENTS
As a result of the 2007 National Agreement, the Plan was amended as follows:
o Effective January 1, 2008, GM Benefit Plans Administration Committee
became the Plan's named fiduciary for general administration.
o Effective January 1, 2008, the Ariel Fund was added to the Investment
Fund Line-Up.
o Effective January 1, 2008, the default investment option was changed
from the Pyramis Strategic Balanced Commingled Pool investment option
to the Pyramis Active Lifecycle Commingled Pool investment options.
13
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
o Effective January 1, 2008, the Neuberger Berman Socially Responsive
Fund Investor Class was replaced with a new Neuberger Berman Socially
Responsive Fund Institutional Class. This new Class provides the same
investment portfolio with a lower expense ratio.
o Effective January 1, 2008, an automatic distribution of a participant's
entire account balance will occur, on a quarterly basis, for retired
and terminated participants who have an account balance of $1,000 or
less.
o In February 2008, GM and the UAW, and GM and the International Union
Electrical Workers - Communication Workers of America ("IUE-CWA"),
reached separately, identical agreements on a comprehensive special
attrition program ("SAP") that was offered to all of GM's UAW-
represented and IUE-CWA represented participants. The SAP offers
participants a choice of several pension and buyout incentives
consisting of $45,000 for production participants or $62,500 for
skilled trades, and mutually satisfactory retirements, which are to be
paid out of the General Motors Hourly-Rate Employees Pension Plan.
Participants have the option of crediting all or designated portions
of these incentives to their accounts in the Plan.
o In September 2006, FASB issued Statement of Financial Accounting
Standards (SFAS) No. 157, "Fair Value Measurements" (SFAS No. 157),
which provides a consistent definition of fair value that focuses on
exit price and prioritizes, within a measurement of fair value, the
use of market-based inputs over entity-specific inputs. SFAS No. 157
requires expanded disclosures about fair value measurements and
establishes a three-level hierarchy for fair value measurements based
on the observability of inputs to the valuation of an asset or
liability as of the measurement date. The standard also requires that
an entity consider its own nonperformance risk when measuring
liabilities carried at fair value, including derivatives. In February
2008, the Financial Accounting Standard Board (FASB) approved
FASB Staff Position No. 157-2, "Effective Date of FASB Statement No.
157" (FSP No. 157-2), that permits entities to partially defer the
effective date of SFAS No. 157 for one year for nonfinancial assets and
nonfinancial liabilities that are recognized or disclosed at fair value
in the financial statements on a nonrecurring basis. FSP No. 157-2 does
not permit entities to defer recognition and disclosure requirements
for financial assets and financial liabilities or for nonfinancial
assets and nonfinancial liabilities that are remeasured at least
annually. SFAS No. 157 is effective for financial assets and financial
liabilities and for nonfinancial assets and nonfinancial liabilities
that are remeasured at least annually for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. The
provisions of SFAS No. 157 are applied prospectively. The Plan is
unable to determine the impact that adopting SFAS No. 157 will have on
its statement of assets available for benefits and statement of changes
in assets available for benefits when such statement is adopted.
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THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
Form 5500, SCHEDULE H, Part IV, Line 4i- Schedule of Assets
(Held at End of Year)
as of DECEMBER 31, 2007 (dollars in thousands)
Identity of Issuer, Borrower, Lessor or Similar Party Current Value
* Participant loans, maturing through
December 25, 2017 with rates ranging
from 4.0% to 9.5% $366,451
========
* Denotes parties-in-interest
15