Query: BDN Parent Co Pension Plan Letter Means What?
Sat, 08/04/2012 - 12:43pm
Posted by Chairman
Bangor Publishing Company (parent company of the Bangor Daily News) has sent out the following to all participants - current and future - of its pension plan. Is there anything here plan participants should be concerned about i.e. a sinking company or is it run of the mill corporate left hand/right hand paper pushing?
The purpose of the notice is to inform you that Bangor Publishing Company did not make the quarterly contribution to the plan that was due on July 13, 2012. The amount of the contribution requirement was $406,757. Bangor Publishing Company intends to apply to the IRS for a waiver of certain minimum funding requirements with respect to the plan. This waiver would provide only temporary relief, as our intention has always been to make sufficient contributions to the plan, so as to enable the plan to pay all of the benefit obligations due. The law requires that we notify you when we do not make a contribution that is due. If the IRS grans us the waiver we intend to request, the contribution that was due on July 13, 2012 will be waived. We anticipate that required quarterly contributions that are due on October 15, 2012 and January 15, 2013 will also not be made to the plan, as we will not yet have received a decision regarding the funding waiver at the time(s) that these contributions are due. Assuming the funding waiver is granted, additional contributions will be paid into the plan during the five year period between 2013 and 2017. We do anticipate that a contribution of approximately $360,000 (plus interest) will be made into the plan by September 15, 2012 to satisfy the contribution requirement for the 2011 plan year.
Looking for informed thoughts/opinions on this.