Report: Newspaper Cuts Contributions To Employees’ 401(k) Plans Due To Obamacare
SAN DIEGO, Calif. (CBS DC) — A California newspaper is reportedly cutting contributions to its employees’ 401(k) plans due to Obamacare.
In a memo obtained by The Poynter Institute, San Diego Union-Tribune CEO John Lynch announced that the media company will suspend matching contributions to the retirement plan due to President Barack Obama’s signature health care law.
“We have made great progress in transforming from a newspaper, to a multi-media Company. However, the media business continues to face the challenges of a difficult economic recovery. The Company also has experienced significant additional expense due to Obamacare,” Lynch said in the memo.
Lynch also stated in the memo obtained by Poynter that the company “will readdress the match” once the business stabilizes.
In a statement to CBS MoneyWatch, Lynch said that health care expenses have grown for the company.
“As a private company, the UT does not discuss its financial strategies or challenges,” he told CBS MoneyWatch. “Suffice it to say our health care expenses have increased significantly.”
The reported move of suspending contributions went into effect on New Year’s Day.