Federal agency will bail out newspaper corporation's pension fund

A federal agency announced on Friday that it would be bailing out the pension fund of the McClatchy Company, a storied newspaper corporation that declared bankruptcy earlier this year due in part to the significant retirement benefits it owes its employees. 

The Pension Benefit Guaranty Corporation, a U.S. agency originally chartered in 1974, said in a press release this week that it had "assumed responsibility for The McClatchy Company Retirement Plan, which covers over 24,000 current and future retirees."

McClatchy, whose February bankruptcy was driven heavily by its considerable pension obligations, has underfunded its pension fund by around $1 billion, the PBGC said on Friday. 

"By assuming responsibility for the plan, we are securing the benefits of the McClatchy plan’s participants," PBGC Director Gordon Hartogensis said in the release. The agency stated that "retirees will continue to receive benefits without interruption, and future retirees can apply for benefits as soon as they are eligible."

Founded in 1857, McClatchy owns nearly 30 newspapers across the country, including the Sacramento Bee, the Charlotte Observer, and the Miami Herald.