Monday, July 16, 2012

Planned 2012 pension contributions slashed 20%

From CEO Gracia Martore's presentation this morning to Wall Street stock analysts after the second-quarter earnings release, according to Seeking Alpha's transcript:

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.

8 comments:

  1. Another BIG RESIGNATION at Pointroll!!! Poor Sarah and Rob...What are they going to do now!

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  2. It's easy to increase the funded percentage when you no longer increase (aka Freeze) the payout.

    Pensions are a very expensive dinosaur that will likely die out in the next generation or two in favor of a 401k matching contribution.

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  3. Jim, thanks to you and blog contributors who have sounded the warning loud and clear.

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  4. Yup. 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.

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  5. YOU ARE YOUR BEST FRIEND

    I'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.

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  6. SLATE: Pension fund under stress

    http://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.

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  7. Jim,

    Is there a differentiation between the "old" Gannett pension the defined benefit; and the newer post 1998 lump sum payout?

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  8. 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.

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Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

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