|Journal Communications Reinstates Enhanced 401(k) Matching Contributions and Amends Other Retirement Plans|
MILWAUKEE, Oct 14, 2010 (BUSINESS WIRE) -- Journal Communications, Inc. (NYSE:JRN), a diversified media company, today announced that it will move away from its defined benefit retirement plans toward its defined contribution 401(k) plan as the primary vehicle for employee retirement savings. Beginning January 1, 2011, the Company will offer enhanced 401(k) matching contributions. In addition, also effective January 1, the retirement plans have been amended such that benefit accruals in the current Pension Plan and the Supplemental Benefit Plan (SERP) will be permanently frozen and the Annual Employer Contribution (AEC) will no longer be a component of the 401(k) Plan.
"We believe this decision allows us to maintain our financial flexibility while still offering a solid retirement benefit," said Steven J. Smith, Chairman, President and CEO. "Enhancing our 401(k) matching contributions will help us recruit and retain talented people as competitive 401(k) plans are a valued benefit in today's workplace."
Starting in 2011, Journal Communications will match $0.50 on every dollar up to 7% of eligible pay for a maximum match of 3.5%. The prior match was $0.50 on every dollar up to 5% of eligible wages for a maximum match of 2.5%. All employer contributions will vest 100% as soon as they are made. In addition, Journal will begin offering a Roth 401(k) option for after-tax contributions.
"Our decision to focus on the 401(k) as the primary retirement vehicle provides us with greater certainty regarding the cost of our ongoing retirement benefits. Additionally, the increase in the employer match is structured to reward greater levels of employee savings," said Andre Fernandez, Executive Vice President, Finance & Strategy, and Chief Financial Officer.
In February 2009, Journal Communications temporarily suspended 401(k) matching contributions. Additionally, the Company suspended benefit accruals to the pension plan, SERP and the AEC for an 18-month period beginning July 1, 2009.
These changes impact only active employees of Journal Communications. The pension plan freeze will not affect the benefits of retirees, beneficiaries or terminated vested participants of the Pension Plan.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community newspapers and shoppers in Wisconsin and Florida. We own and operate 33 radio stations and 13 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets build on our strong publishing and broadcasting brands. We also provide a wide range of commercial printing services - including printing of publications, professional journals and documentation material.
SOURCE: Journal Communications, Inc.
Journal Communications, Inc.