Massachusetts Mutual Life Insurance Company (MassMutual) has agreed to take on approximately $50 million of pension plan obligations from U.S broadcasting company. E.W. Scripps.
The transaction, which involves a group annuity contract, will see MassMutual assume responsibility for the pension benefits of approximately 2,000 Scripps retirees and beneficiaries.
Scripps plans to fund the purchase of the contract through assets of the pension plans, and the company expects to recognise a settlement charge of between $10 million and $12 million in the fourth quarter.
Lisa Knutson, Chief Financial Officer at Scripps, said the agreement represents another step in the company’s efforts to de-risk its pension plan.
The deal is expected to close on 8 November 2018, and MassMutual is due to begin making benefit payments to the affected plan participants on 1 January 2019.
There will be no change to pension plan benefits for plan participants, and Scripps said that it had notified all impacted retirees and beneficiaries of the arrangement.
