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Newspapers seek Gubbamint help on pension requirements
 [Star Tribune] Costs adding pressure to industry, coalition says. This would be the same "Journolism" that just colluded to flood the nation's newsprint with editorials against Trump. F*ck em Amid ongoing upheaval in the media business, a group of local and regional news organizations including the Star Tribune is seeking pension fund relief from Congress. A bill known as the Save Community Newspaper Act of 2018 was introduced last month by U.S. Rep. Erik Paulsen, R-Minn., who said it would help independent newspapers "find their financial footing." The proposal comes as newspaper companies contend with shrinking print advertising revenue and intense online competition, as well as newsprint tariffs that have increased costs. Frank Blethen, publisher of the Seattle Times, said the Girl Scouts of the USA and other nonprofit groups received similar relief in 2014. He said the new legislation would allow newspapers to postpone millions of dollars in pension contributions over the next few years. "I think this will literally save dozens of family-owned newspapers around the country," said Blethen, who is leading the effort. "It is very serious for us. With this pension relief, we would have a pretty clear runway to long-term survival." Newspaper companies face a challenge in generating enough money from current operations to keep up with pension obligations that accumulated when the industry employed more people. Total employment in the industry dropped from about 400,000 in 2008 to just under 175,000 in 2018, according to the News Media Alliance, which represents 2,000 U.S. news organizations. The Star Tribune, which employs about 900 people, provides pension benefits to 3,253 current and former employees and has never failed to meet its pension obligations. The company's pension plan was frozen in 2009. Paul Boyle, senior vice president of public policy at the Alliance, said the pension proposal would save jobs by freeing publishers from rules that "hinder their ability to transition for the future." The bill has bipartisan support from six cosponsors from Washington, New Mexico and California. The proposed legislation would reduce the amount of money a company would have to come up with if a pension plan fell short of various funding targets. It would extend the period for covering any funding shortfalls to 30 years, rather than the current limit of seven years. Posted by: Frank G 2018-08-16 |
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