Phila. papers' union, owner reach accord
PHILADELPHIA (AP) - July 3, 2008 The Newspaper Guild of Greater Philadelphia said it will merge
its $193 million pension fund with the United Independent Union
Pension Plan, a $10 million fund with 700 participants from 10
employers. The two papers' North Broad Street pension also will
merge into the plan.
The merger lets the papers' owner, Philadelphia Media Holdings,
avoid having to put in $8 million to shore up the $7 million North
Broad plan.
Under new federal pension fund rules, a plan must be fully
funded before it can pay out lump-sum severance payments to
retirees or terminated employees. The North Broad plan, which was
set up for this purpose, was 39 percent funded on Jan. 1, 2007,
court documents show.
Merging the North Broad plan into the other fully funded plans
satisfies the new rules. The deal is expected to be completed on
July 30.
With the merger, "we will have achieved our objectives," said
Henry Holcomb, president of the union. "The issues that provoked
the lawsuit would have been addressed."
He said retirement money from the larger pension won't be used
for severance payments.
Philadelphia Media Holdings did not immediately return a call
for comment.
The merged fund will be called the United Independent
Union-Newspaper Guild of Greater Philadelphia Pension Plan.
In April, the union sued the company for merging the Guild and
North Broad pension plans without its consent. It was concerned
that the severely underfunded North Broad plan would endanger the
health of the larger pension.
The owner argued that it had the right to merge the pensions.
The Guild had until the end of 2007 to find a multi-employer plan
with which to merge. Failing that, the company said, it had the
right to take over the plan - and directed a merger with the North
Broad fund.
The company also said the North Broad plan, with nearly 900
members, benefits mostly the same participants in the 2,344-member
Guild plan.
District Court Judge Berle M. Schiller granted a temporary
restraining order, which was extended several times with July 31 as
the latest deadline.
