Employees will receive 90 percent of their base salary and unreduced benefits through June 15, 2017.
GE management is proposing closing the Bloomington plant, but says 94 percent of employees are eligible for a retirement package.
The president of Bloomington’s electrical workers union says the union will likely finalize the tentative agreement with GE next week.
GE is selling its appliances business to a Swedish manufacturer for $3.3 billion.
Within five years, the workforce at the GE Aviation plant is expected to exceed 200 people.
GE is laying off 131 employees at its Bloomington plant because of a drop in demand for the company's side-by-side refrigerators.
GE workers rallied Thursday in hopes the company would reconsider its decision to lay off 160 workers.
GE announced plans earlier this month to lay off 160 workers from its Bloomington plant.
The president of a local union says the company has not created 200 jobs it promised in 2010.
A grassroots group is pushing for all of Indiana to be moved back to central time.