McClatchy Pension Plan

As previously disclosed in McClatchy’s press release dated November 13, 2019, we have been in active restructuring negotiations with the Pension Benefit Guaranty Corporation (PBGC), the federal agency that guarantees benefits under McClatchy’s qualified pension plan, and our largest secured creditor to address the future of our pension obligations and capital structure.

On February 13, 2020, we announced that we are commencing a voluntary restructuring under Chapter 11 of the U.S. Bankruptcy Code. This will provide immediate protection to the Company as we continue our work to definitively address the Company’s funded debt, strengthen our balance sheet, and address our pension obligations moving forward.

Our Board of Directors and management team are confident that this process is the best option for a swift resolution that maximizes the outcome for stakeholders. We expect that this process will result in the assumption of McClatchy’s qualified pension plan by the PBGC, which will continue to pay benefits under the pension plan, subject to federal statutory limits. Once completed, this process will provide certainty to our qualified pension plan participants and to the wider group of employees and stakeholders who benefit from a financially strong McClatchy.

All pension plan participants will receive mailings in the coming weeks about our Chapter 11 filing and case. If you receive a mailing and still have questions, you can always find additional information on our dedicated website, www.McClatchyTransformation.com, or by calling +1 (866) 810-6898.

Thank you for your continued patience during this process.

Qualified Pension Benefits

Qualified pension plans are subject to the Employee Retirement Income Security Act of 1974—a federal law that is designed to protect pension participants like yourself—and are covered by the PBGC. The PBGC is the federal insurer of private-sector defined benefit pension plans like McClatchy’s qualified pension plan, and guarantees benefits under those plans in the event the pension plan does not have sufficient assets to pay all benefits.

Under our proposed plan of restructuring, PBGC would take over McClatchy’s qualified pension plan, The McClatchy Company Retirement Plan, meaning that PBGC would assume the assets and liabilities of the pension plan and continue to pay benefits to the plan participants, subject to federal statutory limits. McClatchy believes that such a solution would not have an adverse impact on qualified pension benefits for substantially all plan participants.

Non-Qualified Pension Benefits

Non-qualified pension plans are not covered by the PBGC, and therefore will not be assumed by the PBGC. If you receive a non-qualified pension benefit, such as a McClatchy Supplemental Executive Retirement Plan (SERP) or a former Knight Ridder Benefit Restoration Plan (BRP), the rights and recovery will be determined through the Court process. You should visit www.kccllc.net/McClatchy for more information.

 

So that you are fully updated, we’ve created FAQs with the latest information.

The Pension Benefit Guaranty Corporation (“PBGC”) is the federal insurer of private-sector defined benefit pension plans, including The McClatchy Company Retirement Plan, McClatchy’s qualified pension plan. This means that PBGC guarantees the benefits under the pension plan, subject to certain federal statutory limits. If PBGC takes over the qualified plan, it would assume the assets and liabilities of the pension plan and continue to pay benefits to the plan participants, subject to these limits. McClatchy expects that substantially all of the participants and beneficiaries under the qualified pension plan would see no changes to their benefits as a result of a takeover by the PBGC.

McClatchy has applied to the Pension Benefit Guaranty Corporation (“PBGC”) to terminate McClatchy’s qualified pension plan, The McClatchy Company Retirement Plan. If the PBGC agrees that the pension plan should be terminated, it would assume the assets and liabilities of the pension plan and continue to pay benefits to the plan participants up to federal statutory limits. We expect that substantially all of the participants and beneficiaries under the qualified pension plan would see no changes to their benefits as a result of a takeover by the PBGC.However, until PBGC takes over the pension plan, McClatchy will continue to administer the plan and pay plan benefits. And, as a result of the bankruptcy filing, the pension plan is prohibited by law from paying lump sum distributions in the amount of $5,000 or more. Aside from that restriction on lump sum payments, the plan will continue to pay benefits as usual.

Under our proposed plan of restructuring, the assets and liabilities of the McClatchy’s qualified pension plan will be assumed by the PBGC. If the PBGC takes over the pension plan, it will continue to pay the Company’s qualified pension plan participants their benefits, subject to federal statutory limits. McClatchy believes that such a solution would not have an adverse impact on qualified pension benefits for substantially all plan participants. Non-qualified pension plans are not covered by the PBGC, and therefore will not be assumed by the PBGC. If you receive a non-qualified pension benefit, such as a McClatchy supplemental executive retirement plan (SERP) or a former Knight Ridder Benefit Restoration Plan (BRP), you should visit www.kccllc.net/McClatchy for more information.

Any further questions you have about the impact of a PBGC takeover on your qualified pension benefit would be best directed to your own financial advisor or legal counsel. We cannot provide specific advice regarding your pension benefit.

Under our proposed plan of restructuring, the assets and liabilities of the McClatchy’s qualified pension plan will be assumed by the PBGC. If the PBGC takes over the pension plan, it will continue to pay the Company’s qualified pension plan participants their benefits, subject to federal statutory limits. McClatchy believes that such a solution would not have an adverse impact on qualified pension benefits for substantially all plan participants.If you receive a non-qualified pension benefit, such as a McClatchy supplemental executive retirement plan (SERP) or a former Knight Ridder Benefit Restoration Plan (BRP), you should visit www.kccllc.net/McClatchy for more information.

If you receive a non-qualified pension benefit, such as a McClatchy supplemental executive retirement plan (SERP) or a former Knight Ridder Benefit Restoration Plan (BRP), the rights and recovery will be determined through the Court process, and you should visit www.kccllc.net/McClatchy for more information. The Company disclosed SERP payment suspension in a press release on January 2, 2020.

If you have any questions about your pension benefits or what pension plan you are a participant of, please call the KCC hotline at +1 (866) 810-6898

You can find additional information on our dedicated website,  www.McClatchyTransformation.com, throughout the process or by calling +1 (866) 810-6898.

McClatchy Retirement Plan – which includes all former Knight Ridder Pension Plan participants and benefits – was frozen as of March 31, 2009. That means participants no longer accrue additional benefits beyond that date and the benefit is no longer available to employees hired after that date.

McClatchy is committed to honoring all of its pension obligations and continues to make sizeable contributions to ensure adequate plan funding now and in the future.

Check My Pension Benefit

Log into Employee Self Service on the McClatchy Network

Home>Benefits>Benefits Information>Pension Estimates

To request an estimate of your pension, please complete the Estimate Request Form and submit to McClatchy via one of the following options:

Email: pensions@mcclatchy.com
Fax: 916-321-1954
Mail to:

McClatchy/Pension
2100 Q Street
Sacramento, CA 95816
You may also complete the online estimate request form. This form will automatically be sent to the pensions department upon completion.
Please allow up to 3 weeks for your estimates.

The Summary Plan Description (SPD) is a detailed guide on what benefits the McClatchy Pension Plan provides and how the plan works.

McClatchy Pension Plan SPD

McClatchy Contacts

If you have questions about your non-qualified plan (i.e. SERP, BRP, etc.):