A day before announcing a, General Motors decided to for around 19,000 salaried workers hired before 2001 and transition those employees to a 401(k)-type plan based on worker contributions.
Workers hired after 2001 are already in the same plan, which does not provide guaranteed benefits, relying on employee contributions based on salary and bonuses.
Rebecca Jarvis explained some of the automaker's rationale for the move, especially in light of its record profits, on "CBS This Morning" Thursday:
"There are still 500,000 workers who have now left General Motors who they are still paying pension plans to. That's a $9 billion shortfall that General Motors is facing. In a company that's making about $8 billion in profits, that's really hard to continue to pay out over time," she said.
Watch Jarvis' full analysis, including how GM's move may benefit taxpayers, in the video player above.