We've contributed about $76 million to the pension plan through the first half of the year. Our guidance had anticipated contributions of approximately $118 million in 2012. However, recent changes in legislation have reduced the required funding in the near to medium term. We now anticipate that we will contribute a total of $94 million for the entire year.
At the end of this year -- at the end of last year, our principal pension plan was about 82% funded. The impact of the new legislation will move the funded percentage up to the 90% to 95% range. We expect there will also be an impact on next year's funding, but it is still a little too early to call.
Earlier: Why you should worry about the pension plan's financial health.
Another BIG RESIGNATION at Pointroll!!! Poor Sarah and Rob...What are they going to do now!
ReplyDeleteIt's easy to increase the funded percentage when you no longer increase (aka Freeze) the payout.
ReplyDeletePensions are a very expensive dinosaur that will likely die out in the next generation or two in favor of a 401k matching contribution.
Jim, thanks to you and blog contributors who have sounded the warning loud and clear.
ReplyDeleteYup. The current generation and beyond have no choice but to play the stock market with their 401K. And a whole lot of seniors and others were screwed in the 2008 crash and can't ever afford to retire.
ReplyDeleteYOU ARE YOUR BEST FRIEND
ReplyDeleteI've commented several times on low bond yields. Let me add this --
You are your best friend. If you think the govt. or Capt. Gannett will ride to the rescue -- you will wait a very long time, IMHO.
The taxpayer public debt is approaching $16,000,000,000,000.00 -- after the election, a hard rain is going to fall. Either program cuts and/or S&P bond downgrades, which will make things even harder. Math is non-partisan -- (X - XX = -X).
OTOH -- you live in a country, that millions are trying to reach. Most of you work hard and show up on time. That makes you better than about 50% of the workforce.
There are options. You are your best friend.
The pension fund is serious. It is a major factor in the NYTimes negotiations. It needs to be watched, carefully. Jim is helping. Still, there may continue to be lean years.
SLATE: Pension fund under stress
ReplyDeletehttp://www.slate.com/blogs/breakingviews/2012/07/16/us_student_loan_fix_robs_the_old_to_pay_the_young_.html
You are your best friend. Always keep track of the pension fund.
Jim,
ReplyDeleteIs there a differentiation between the "old" Gannett pension the defined benefit; and the newer post 1998 lump sum payout?
So as soon as the government changes the contribution requirements, the great Gannett pounces and lowers theirs. They couldn't wait for the ink to dry.
ReplyDelete