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Benefits June 12, 2008
Media Co. Gannett to Freeze DB Plan
June 12, 2008 (PLANSPONSOR.com) - Media giant
Gannett Co. has joined the ranks of employers who have frozen
their defined benefit pension plans and beefed up their
401(k) programs as a money-saving effort.
Reported by
Fred Schneyer
Reuters reported that the company anticipates saving $90 million from the move and plans to use $60 million of it for the 401(k) enhancements. The changes are effective August 1.
According to a memo from Chief Executive Craig Dubow, cited in the news report, Gannett will also apply cost-of-living allowances to the money workers have invested in the 401(k) plan.
Freezing the pension plan “is another important step in keeping Gannett financially strong,” Dubow wrote in the memo.
The company said earlier this week it would take a non-cash pre-tax writedown of $2.5 billion to $3 billion in the second quarter because the value of its assets had diminished.
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