McClatchy Pension

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UpsetRaptor
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McClatchy Pension

Post by UpsetRaptor » Tue Nov 19, 2019 10:34 am

Does anyone know if the pension fund for McClatchy (a newspaper company in the news recently because they're teetering on the brink of bankruptcy) is a single employer plan fully insured with the PBGC? And if that's the case, then if/when the plan terminates can one assume the PBGC will take over and your max applicable benefits can be determined here: https://www.pbgc.gov/wr/benefits/guaran ... -guarantee ?

Or is there something else about the plan - multiemployer, lack of years insured with PBGC, whatever- which could mean potential cuts beyond detailed in that link?

A retired close relative will really be in a tough spot if her pension were to go away or have a drastic cut, so she/we are trying to anticipate what to plan for. She has no idea the answer to these questions.

GAAP
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Re: McClatchy Pension

Post by GAAP » Tue Nov 19, 2019 2:10 pm

Don't know enough about McClatchy to be certain what applies, but multi-employer generally means
unionized workers of non-related employers in the same industry, such as trucking or construction.
.

Also, keep in mind the limits on what PBGC guarantees: https://www.pbgc.gov/wr/benefits/guaranteed-benefits.

If it happens, expect the process to take some time -- I think I got tentative numbers for the NTI bankruptcy in the first year -- barely. Confirmed, final numbers took longer.
“Adapt what is useful, reject what is useless, and add what is specifically your own.” ― Bruce Lee

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Oicuryy
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Re: McClatchy Pension

Post by Oicuryy » Tue Nov 19, 2019 3:47 pm

Maybe these links will help.

FAQ
https://www.mcclatchylivewell.com/financial/pension/

2016 annual report. Set Note 4 on page 8.
http://media.mcclatchy.com/livewell/med ... Report.pdf

Summary Plan Description
http://media.mcclatchy.com/static/livew ... PD2016.pdf

Contact phone and email
https://www.mcclatchy.com/contact

Ron
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Sellarsian
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Re: McClatchy Pension

Post by Sellarsian » Tue Nov 19, 2019 6:37 pm

The McClatchy Company Retirement Plan is a single employer plan that has been covered by the PBGC since the PBGC's inception in 1976. It includes the old Knight Ridder pension plan.

Although the PBGC has limits on the amount of pension that it guarantees, those limits would generally cover the entire benefit provided by the MCRP in the large majority of cases.

Some former executives are entitled to an additional "nonqualified" pension that is paid directly by the Company rather by the Plan. These pensions are not guaranteed by the PBGC.

Some folks who worked for KR in the past while represented by a union likely earned pension under a separate single employer or multiemployer plan just for bargaining employees. Those plans are not impacted by current events at McClatchy.

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UpsetRaptor
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Re: McClatchy Pension

Post by UpsetRaptor » Wed Nov 20, 2019 10:23 am

Very helpful replies, thank you everyone.

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Oicuryy
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Re: McClatchy Pension

Post by Oicuryy » Thu Feb 13, 2020 11:53 am

McClatchy filed for bankruptcy today. Here is the press release.
http://investors.mcclatchy.com/news-rel ... soliciting
The Company will seek the Bankruptcy Court's authority to terminate its qualified pension plan, and appoint PBGC as the plan's trustee. Under a plan termination, PBGC would continue to pay the Company's qualified pension plan participants their benefits, subject to federal statutory limits. Under current regulations, McClatchy believes that such a solution would not have an adverse impact on qualified pension benefits for substantially all plan participants. The Company proposes to settle its liabilities in connection with the qualified pension plan by paying PBGC $3.3 million from the Company each year for ten years and 3% of the equity ownership of the Company.
Here is their page for pensioners.
https://www.mcclatchytransformation.com/pensioners/

Ron
Money is fungible | Abbreviations and Acronyms

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