Friday, August 28, 2009
Tribune Company Pension Funding Update
From: Tribune Communications [mailto:TribuneCommunications@Tribune.com]
Sent: Friday, August 28, 2009 7:19 AM
Subject: Message from Mike Bourgon/Pension Funding Update
Earlier this year, Tribune conducted a preliminary estimate of the funded status of the Tribune Company Cash Balance Pension Plan. At that time, Hewitt Associates, our independent valuation firm, estimated the plan may not be 100% funded. This change in the funded status was primarily due to volatility in the public equity and debt markets. The combination of the plan’s funded status and Tribune ’s Chapter 11 filing restricted the plan from offering eligible participants the option of receiving a lump sum distribution (this includes rollovers to other qualified plans).
Since then, Hewitt has completed their final valuation calculations. I’m pleased to inform you that the Tribune Company Cash Balance Pension Plan (including the Tribune and Times Mirror Pension Plans and the Sunpapers Guild Pension Plan) is now certified as fully funded as of January 1, 2009 . That means the plan can once again offer lump sum distributions to eligible plan participants after they leave the company.
We are still required to perform annual pension plan valuations and will communicate the funded status of the plan after each analysis. If a future valuation determines the funded status to be below 100% while we are under bankruptcy court protection, the plan may once again be restricted from paying benefits in a lump sum until it becomes fully funded.
If you have questions about the Tribune Company Cash Balance Pension Plan or to determine if you’re eligible for a lump sum, please contact the Hewitt Retirement Center at 800/872-2222.
Vice President/Human Resources