The New York Times Co. has entered into an agreement with Massachusetts Mutual Life Insurance Company (MassMutual) in which approximately $235 million in obligations under The New York Times Companies Pension Plan will be transferred to MassMutual.
The pension plan will purchase from MassMutual a group annuity contract for approximately 1,850 retirees and beneficiaries. MassMutual will assume the administration of the payment obligation for those affected.
“This arrangement is part of the company’s continued effort to manage the overall size and volatility of its pension plan obligations, and the administrative costs related thereto,” the company said in an announcement.
The company expects to finalize the transaction by early 2021. It said the purchase of the group annuity contract will be funded through existing pension plan assets.
As a result of the transaction, The New York Times Co. expects to recognize a non-cash pension settlement charge of approximately $80 million to $85 million before tax in the fourth quarter of 2020. This charge represents the acceleration of deferred charges currently accrued in accumulated other comprehensive income.
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