The Pension Benefit Guaranty Corporation (PBGC) has taken over responsibility for the McClatchy Company Retirement Plan, which covers more than 24,000 current and future retirees.
In February, the McClatchy Co. and 53 subsidiaries filed for Chapter 11 protection in the U.S. Bankruptcy Court in Manhattan. In August, the bankruptcy court approved the sale of substantially all assets of McClatchy and its subsidiaries. The PBGC terminated the pension plan as of August 31 and is now the statutory trustee.
“PBGC’s mission is to help protect the retirement security of millions of the nation’s workers, retirees and their families, and that’s exactly what we have spent months doing in the McClatchy bankruptcy,” PBGC Director Gordon Hartogensis said. “By assuming responsibility for the plan, we are securing the benefits of the McClatchy plan’s participants.”
The agency estimates that McClatchy’s plan is 57% funded with approximately $1.3 billion in assets and $2.3 billion in benefit liabilities. The PBGC said McClatchy retirees will continue to receive benefits without interruption, and future retirees may apply for benefits as soon as they reach eligibility. The PBGC also stated it will pay pension benefits earned by McClatchy’s current and future retirees up to legal limits. More information on limitations can be found here.
According to the PBGC, the claim resulting from termination of the McClatchy pension plan was not included in the agency’s fiscal year 2019 year-end financial statements but will be reflected in its fiscal year 2020 year-end financial statements.
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