New York Times Co. will reduced the benefit accrual formula for its non-union defined benefit plan and increase contributions to its non-union 401(k) plan, effective Jan. 1, according to an SEC filing.
Also, retiree medical benefits will be eliminated for all employees who leave the company after March 1, 2009.
The company expects the pension and medical changes will save an estimated $15 million, and reduce its pension obligation by $70 million and retiree medical obligation by $20 million, the filing said.
The New York Times DB plan had $1.54 billion in assets and $1.59 billion in liabilities as of Dec. 31. The company contributed $11.9 million to the plan last year, according to another SEC filing.
The company has $229 million in retiree medical obligations, all unfunded.
The new 401(k) plan contribution level was unavailable. According to Money Market Directory, the 401(k) plan had $511 million as of December 2005. The company contributed $14.8 million to the 401(k) last year, according to an SEC filing.
The company also reduced the benefit accrual formula in its non-tax-qualified supplemental executive retirement plan, effective Dec. 31, for executive participants with less than 20 years of service. Executive participants in the SERP, a defined benefit plan, with at least 20 years of services won't be affected by the cuts. The SERP is designed to provide greater retirement benefits beyond the qualified DB plan.
