New York Times Co., New York, on Friday announced it will offer lump-sum payouts to a total of about 5,200 former employees as part of its efforts to reduce its pension obligations and volatility in the company's financial condition.
Eligible participants will have from Sept. 24 to Nov. 2 to choose whether to take the lump sum or stay in the pension plan, according to an 8-K filing with the SEC.
As of Dec. 31, the company's pension plan assets had a fair value of $1.464 billion, compared to $1.987 billion in projected benefit obligations, for a funding ratio of 73.7%, according to the company's most recent 10-K filing.
The company says it will record a non-cash settlement charge in the fourth quarter depending on the number of participants choosing the lump-sum option.
Company spokeswoman Abbe Serphos said the offer is being sent to the eligible former employees now and the company would not provide information regarding how many employees they estimate will accept the offer.