The Associated Press (AP) will freeze its defined benefit (DB) pension plan and set up a new defined contribution (DC) plan under a tentative 33-month deal signed with The News Media Guild, Pensions & Investments reports. Employees will not be allowed to earn benefits in the plan after June 30.
AP will allocate an amount equal to 6 percent of employees’ salaries to a DC plan if the contract is ratified. Employees, who have at least 10 years of service, will get an additional annual contribution equal to 2 percent of their salaries for the next eight years, while those with less than 10 years of service will get additional 1 percent of their salaries. The move will affect about 950 Guild employees.
