September 17, 2012 (PLANSPONSOR.com) – The Times Co. has joined the list of companies offering retirees lump-sum payments of their pensions in an effort to reduce its obligations.
According to The New York Times, a securities filing released last week indicated about 5,200 former employees of the Times Company who have vested in the pension plan can continue to receive a pension when they retire or can accept a lump-sum payment in cash or to roll into a retirement plan.The participants must choose an option between September 24 and November 2.
The news report said the former employees being offered the option do not belong to the union and could include former employees of newspapers previously owned by the Times Company. These employees account for 15% of the company’s total pension liabilities.
The New York Times Company’s total pension liabilities as of late last year totaled $1.987 billion. Other companies that have taken this pension de-risking move include NCR Corporation and auto giants Ford and GM (see “Another Company Offering Lump-Sums to De-Risk Pension”).