New York Times Cuts Pensions for Ex-Employees
The New York Timesmoved on Friday to reduce some of the burden associated with pension liabilities, offering some of its fomer employees a choice between lump-sum payments or a reduced montly stream of funds.
The New York Times, publisher of its namesake newspaper and the Boston Globe, said in a regulatory filing that the voluntary offer will be made to about 5,200 people who represent roughly 15 percent of its pension plan liabilities, which was about $1.99 billion as of Dec 25, 2011.
The company said those individuals could either recieve a one-time lump sum payment, or start a lower monthly annuity now. As a result of the changes, the Times expects to record a non-cash settlement charge in the fourth quarter of 2012.
"This offer is another step the company is taking to reduce the size of its pension obligations and the volatility in the company's overall financial condition," it said.