The Washington Post announced “large cuts in retirement benefits … declaring that it would eliminate future retirement medical benefits and freeze defined-benefit pensions for nonunion employees,” reported The Post’s Steven Mufson.

The company also said that in negotiations now underway, it will seek to impose the same conditions on employees covered by the union — one of the first indications of how The Post’s new owner, Amazon.com founder Jeffrey P. Bezos, will manage relations with the staff of the news organization, continued The Post’s report, which added:

“The changes will hit hardest at employees hired before 2009 who could plan on receiving pension payments based on their income and years of service. Each of those employees could see scores — or hundreds — of thousands of dollars less over the course of a retirement. More recent hires do not have traditional pension plans.

“The Post will create a new cash balance plan to replace the pensions for nonunion employees and a separate but similar plan for those covered by the union. Those plans provide employees with a lump sum or annuity when they retire. But they do not guarantee a particular level of retirement payments, thus reducing the risk that Bezos would have to add money to the pension if financial markets plunged.”

More the full Post report, click here.

Leave a Reply

Your email address will not be published.