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Compliance August 17, 2010
PBGC Takes on Plan of FL Newspaper Publishing Company
August 17, 2010 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the underfunded pension plan covering more than 1,100 workers and retirees of News-Journal Corp., a newspaper publishing company in Daytona Beach, Florida.
Reported by Rebecca Moore
The PBGC said it took action because News-Journal’s assets were sold under receivership and the buyer did not assume the pension plan. According to PBGC estimates, the Pension Plan of News-Journal Corporation is 65% funded, with assets of $28.20 million to cover $43.66 million in benefit liabilities.
The PBGC expects to be responsible for $15.39 million of the $15.47-million shortfall. The plan ended March 23, 2010. The agency assumed responsibility for the plan August 6, 2010.
According to the PBGC announcement, News-Journal is the publisher of the Daytona Beach News-Journal and six local shopping guides through its wholly-owned subsidiary, the Volusia Pennysaver, Inc.
On April 17, 2009, the communications company, Cox Enterprises Inc., asked the U.S. District Court for the Middle District of Florida to place News-Journal into receivership. On January 6, 2010, the court-appointed receiver and Cox filed a joint motion for approval of an asset purchase agreement that would establish the sale of substantially all of News-Journal’s publishing assets to Halifax Media Acquisition LLC. The sale was approved by the District Court on March 23, 2010.