RR Donnelley expects to cut contributions to its 2012 defined-benefit pension and other post-retirement benefit plans by US$46M, citing recent legislation allowing employers to use higher interest rate assumptions in valuing plan liabilities

Sandy Yang

LOS ANGELES , July 26, 2012 (Industry Intelligence Inc.) –

R.R. Donnelley & Sons Co. expects to trim 2012 contributions to its defined-benefit pension and other post-retirement benefit plans by US$46 million, according to a filing with the U.S. Securities & Exchange Commission (SEC), reported Business Insurance on July 26.

The anticipated reduction in these contributions will bring R.R. Donnelley’s total pension and 401k contributions to $205 million this year, the Chicago, Illinois-based printer indicated in the SEC filing.

In 2013, the company expects to contribute about $110 million to its pension and 401k plans. In 2011, the company froze accruals in its defined benefit program due to volatile market returns and interest rates.

R.R. Donnelley attributed its decision to the impact of legislation Congress approved in June. That provision, which was part of a highway bill signed by President Obama, allows employers to use higher interest rate assumptions when valuing plan liabilities, Business Insurance reported.

The primary source of this article is Business Insurance, Chicago, Illinois, on July 26, 2012.

 

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