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Benefits January 20, 2009
Newspaper Company Suspends 401(k) Match, Profit Sharing Contributions
January 20, 2009 (PLANSPONSOR.com) - Citing an
"extremely tough business climate in 2009," Richmond,
Virginia-based Media General said in a letter to employees it
will stop matching employee deferrals to its 401(k)
retirement plans starting April 1.
Reported by Rebecca Moore
In addition, in his letter, President and CEO Marshall N. Morton said, “…based on our outlook for the year, we do not anticipate a level of earnings in 2009 that would generate a 401(k) plan profit sharing contribution.” Morton said both company match and profit sharing contributions would be reinstated upon improved business conditions.
Media General publishes 24 daily newspapers and about 275 weekly newspapers and other publications, including the Richmond Times-Dispatch and the Tampa Tribune. It also owns and operates 19 network-affiliated television stations, and Web sites associated with its newspapers and television stations, the Times-Dispatch reports.
Consumer group the Pension Rights Center, indicates that since June 2008, at least 38 large companies have publicly disclosed plans to change or eliminate contributions to their employee’s 401(k) accounts, according to the news report. (See (k)Plans: Rough Cuts)