E.W. Scripps enters into agreement with Massachusetts Mutual Life Insurance
The E.W. Scripps has entered into an agreement with Massachusetts Mutual Life Insurance to purchase a group annuity contract and transfer approximately $50M of the company's pension plan obligations. The transaction will transfer responsibility for the pension benefits to MassMutual for approximately 2,000 Scripps retirees and beneficiaries. MassMutual will begin making benefit payments to the affected plan participants on Jan. 1, 2019. There will be no change to pension plan benefits for plan participants. Through the transaction, Scripps will reduce its pension plan liabilities by approximately $50 million. The purchase of the contract will be funded by assets of the pension plans, and no additional contributions will be required to facilitate the transaction. The transaction is expected to close on Nov. 8. Scripps expects to recognize a one-time non-cash pension settlement charge of between $10M-$12M in the Q4. Impacted retirees and beneficiaries received preliminary notification in August and will be sent additional information later this month.