GM May Lower Pension Return Expectations

General Motors (GM Quote) will likely lower its expected rate of return on its pension fund from 10% -- a move that will raise pension costs and possibly eat into earnings.

The nation's largest automaker will update its forecasts on Thursday, providing information about its pension fund performance in 2002 as well as expectations for 2003, according to spokesman Jerry Dubrowski.

"In light of where the market (has traded) the last three years, we have said that if we need to make any change in the assumption ... it's more likely to be to the downside as opposed to the upside," he said. ...