Staff at the Associated Press were yesterday told via a memo from AP CEO Tom Curley that the company was proposing to freeze the defined benefit pension plan at its current level, according to a copy of the memo posted by Jim Romenesko on Poynter.
In the note Curley adds that any future company investment in the pension 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. Nearly all media companies, as well as more than half of Fortune 100 companies, have already frozen their defined benefit plans.
This was not an easy decision. Your pension and your well-being are very important to me. As we work through these changes, we will strive to find ways to maximize your retirement benefits. Within the next two days, you will be receiving more information about our proposal and the impact it might have. Once the negotiation process is concluded, we will make sure you have more detailed information as quickly as we can.