Get more! Sign up for PLANSPONSOR newsletters.
Benefits November 12, 2009
New York Times is Freezing Pension Plan
November 12, 2009 (PLANSPONSOR.com) - The New York Times Company has amended The New York Times Companies Pension Plan, a defined benefit pension plan for non-union employees, to discontinue future benefit accruals and freeze existing accrued benefits effective December 31, 2009.
Reported by Rebecca Moore
In a filing with the Securities and Exchange Commission,
the Times said it is increasing contributions under The New York Times
Companies Supplemental Retirement and Investment Plan (SRIP), its 401(k) plan, such
that participants will receive a cash contribution of 3% of pay, up to
applicable limits, effective January 1, 2010.
In addition, the company approved a freeze of The New
York Times Company Supplemental Executive Retirement Plan (SERP), a
non-qualified defined benefit plan that provides enhanced retirement benefits
to select members of management, also effective December 31, 2009. The Times
approved the adoption of two unfunded supplemental defined contribution plans.
Under the first, The New York Times Company Savings
Restoration Plan (Restoration Plan), participants are provided with the portion
of the 3% basic contribution that cannot be provided under the SRIP as a result
of Internal Revenue Code limits on the amount of compensation and annual plan additions
under the SRIP. Participants will vest in their accounts pursuant to a
five-year graded vesting schedule, the filing said.
Under the second, The New York Times Company Supplemental
Executive Savings Plan (Supplemental Savings Plan), a participant’s account will
be credited each year with a supplemental contribution equal to: (i) 10%
of his or her compensation for SERP participants on December 31, 2009; or
(ii) 5% for those who were not SERP participants on December 31,
2009. Participating executives will vest in their benefit upon attaining age 55
and completing 10 years of service.