A group of local news organizations wants help from
Congress on pensions. A bill called the Save Community Newspaper Act of 2018
was put forward in July by U.S. Rep. Erik Paulsen, R-Minn.
Seattle
Times Publisher Frank Blethen is spearheading the campaign and said the
legislation would let newspapers postpone millions of dollars in pension
contributions.
“I think
this will literally save dozens of family-owned newspapers around the country,”
Blethen told the Star Tribune. “It is very serious for us. With
this pension relief, we would have a pretty clear runway to long-term
survival.”
Employment
in the industry dropped from about 400,000 in 2008 to under 175,000 in 2018,
according to the News Media Alliance. The drop can make it difficult for some
organizations to fulfil pension payments.
The
legislation would lower the funds a company would have to come up with if a
pension plan failed to meet funding targets. It would lengthen to 30 years the
period for covering shortfalls. The current period is seven years.
The bill
would change the requirements for private pension plans operated by independent
daily newspapers that serve communities with populations topping 100,000,
according to a House report on the bill.
The
legislation would not help big media companies that have newspapers in numerous
states or companies whose stock trades publicly.
Blethen
said the bill would likely aid some 30 newspaper companies.
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