A.H. Belo Corp., Dallas, purchased a group annuity contract from an insurance company to transfer $43.5 million in pension liabilities, the company disclosed in an 8-K filing with the Securities and Exchange Commission.
The company did not disclose the name of the insurance company and said the action was taken because "we are committed in our efforts to derisk our pension plans," the company said in the filing Oct. 27. A $20 million contribution, plus $23.5 million in existing assets, were used in the transaction. A premium was not disclosed.
"The derisking strategy has reduced the long-term pension liabilities of the company," the filing said. "We are very pleased with our ability to execute on multiple capital allocation strategies over the last two months."
The newspaper company's pension plans were closed to new hires in 2000 and benefit accruals were frozen in 2007.
As of Dec. 31, plan assets totaled $204.1 million, while projected benefit obligations totaled $259 million, for a funding ratio of 78.8%.
A.H. Belo Corp. officials could not be immediately reached to provide further information.