Compliance January 4, 2011

Motorola Agrees to $100M Pension Payment

January 4, 2011 (PLANSPONSOR.com) – Motorola – now known as Motorola Solutions – has agreed to contribute an extra $100 million to its pension plan over five years as part of a deal with the Pension Benefit Guaranty Corporation (PBGC).
Reported by

The PBGC said in an announcement that the plan will continue to operate under the company’s sponsorship; the plan has 87,000 participants.

According to the PBGC,  Motorola and the agency entered into the agreement as the company was considering a spinoff of its Motorola Mobility business, and the sale of certain assets of its Networks business.

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“One way PBGC protects pensions is to work with companies before they undertake major transactions,” said PBGC Director Josh Gotbaum, in the announcement. “We commend Motorola Solutions for approaching us in advance. The result helps both Motorola and its retirees.”

Benefits January 4, 2011

Belo Corp. Splits out Pensions of Newspaper Companies

January 4, 2011 (PLANSPONSOR.com) - A. H. Belo Corporation and parent company Belo Corp. have completed the split of The G. B. Dealey Retirement Pension Plan into separately-sponsored plans.
Reported by

According to a press release, benefit liabilities and assets allocable to the approximately 5,100 current and former employees of A. H. Belo and its newspaper businesses under the GBD Pension Plan have been transferred in accordance with government regulations into the AHC Pension Plans. A. H. Belo has decided to make an additional contribution totaling $30 million into the two new defined benefit pension plans.  

The benefit liabilities and assets allocable to the current and former employees of Belo Corp. and its television businesses continue to be held by the existing GBD Pension Plan. The GBD plan was frozen as of March 2007 (see Belo Joins Ranks of Firms Freezing DB Plan).  

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The slumping economy has caused Belo Corp. to make other moves such as suspending its 401(k) match, cutting managers’ salaries, and reducing staff (see Belo Trims 401(k) Match and Cuts Salaries, Jobs).

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