By: E&P Staff To help regain a projected pension-fund shortfall, the Saint Paul (Minn.) Pioneer Press has proposed freezing the pension benefits of its workers in the Minnesota Guild Typographical Union, reports the paper.
Over the past year, the pension fund went from meeting federal minimum standards to projecting a $22 million deficit by 2009, according to court documents and the union, said the paper. The Pioneer Press reports that a pension freeze would not entirely account for the projected deficit.
The Newspaper Guild opposes the indefinite pension freeze for the 450 members who would be affected. The freeze would stop employees from accruing any further pension benefits, regardless of years of service, according to the paper. It would not affect retirees or those whose benefit levels have already been set.
A 2004 annual report by the actuary said that the Pioneer Press would need to gain $22 million to be spread over 2006 through 2009 in order to maintain the federal requirements.
The pension fund has six trustees, three members appointed by the company and three by the union. According to the paper, in March 2005, the trustees began discussing the funding problem and the freezing of benefits.
David Krause, lawyer for the union, told the Pioneer Press reporter that the recent sale of the paper to McClatchy Co., followed by its sale to Denver-based MediaNews Group Inc. had no affect on the problems of the fund.
Comments
No comments on this item Please log in to comment by clicking here