McClatchy Co., Sacramento, Calif., will see its 2013 and 2014 pension contributions reduced by a combined $43 million because of the funding relief provisions of the federal highway bill enacted July 6, according to a McClatchy statement.
The company plans to contribute $10 million to its defined benefit pension plan in 2013 and $25 million in 2014, according to an 8-K filing Friday. It had expected to contribute a total of $78 million over the two years.
“We believe this is a more appropriate valuation of pension obligations,” Elaine Lintecum, CFO, said in the release.
The company contributed $40 million to its plan in January and does not expect to make further contributions this fiscal year, according to its 10-K filing in February.
As of Dec. 31, the fair value of plan assets was $1.233 billion and the projected benefit obligation, $1.764 billion, for a funding ratio of 70%, according to the 10-K filing. The company contributed $220 million to the plan in 2011.
Ms. Lintecum did not return a phone call by press time.