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Deals & People October 26, 2010
AP Proposes Switching to DC Plans
The Associated Press is proposing a new contract with union
employees under which its defined benefit pension plan would be frozen.
Reported by Rebecca Moore
In a letter to AP staff, CEO Tom Curley said under the proposal, any future company contributions to employees’ retirement would be directed toward a defined contribution plan.
“Since I came to AP I have strived to do everything possible to keep your pension plan intact. Unfortunately, industry and economic pressures mean this is no longer possible,” Curley said.
Curley noted that many media companies have already frozen their defined benefit plans.
Earlier in the month, Journal Communications Inc., which publishes the Milwaukee Journal Sentinel and owns and operates 33 radio stations and 13 television stations in 12 states, announced that on January 1 it will permanently freeze benefit accruals in its current pension plan and supplemental benefit plan, and instead offer enhanced 401(k) matching contributions to its employees (see Media Firm Makes DB to DC Switch).