Standard Register Expects to Reduce Pension Contributions Through 2014 under New Legislation
11 Julho 2012 - 9:30AM
Business Wire
Standard Register (NYSE: SR), a leader in the management and
execution of mission-critical communications, today provided an
update on pension funding expectations for 2012 through 2014 based
on provisions of the highway reauthorization legislation signed
into law last week.
Standard Register had previously expected pension contributions
for 2012 through 2014 to total $112 million. With relief provided
by the Moving Ahead for Progress in the 21st Century Act (MAP-21),
commonly referred to as the highway bill, the Company expects to
reduce the total by approximately $17 million, to $95 million.
2012 2013
2014 Total (Dollars in millions)
Previously expected pension contribution $ 27 $ 38
$ 47 $ 112 Estimated pension
contribution under MAP-21 $ 23 $ 30 $
42 $ 95 Change $ 4 $ 8 $ 5 $ 17
MAP-21 provides pension plan sponsors with funding relief by
stabilizing interest rates used to determine required funding
contributions to defined benefit plans. The new legislation allows
the use of a 25-year average corporate bond rate adjusted to the
applicable corridor rather than a 2-year average rate as required
under the prior law to calculate funding requirements.
“The passage of this pension plan interest rate stabilization is
very positive for Standard Register,” said Joseph P. Morgan, Jr.,
president and chief executive officer. “We are committed to fully
funding our pension liability. This short-term funding relief
provides us with the ability to use the cash to invest in growing
our business and accelerating our strategy.”
Morgan also reinforced that the savings expectations are
preliminary estimates. The Internal Revenue Service (IRS) will
determine the 25-year average rates on an annual basis and may
prescribe equivalent rates for any years in the 25-year period for
which segment rates determined under the regular rules are not
available. MAP-21 also includes an increase in future Pension
Benefit Guarantee Corporation (PBGC) premiums. Standard Register
intends to provide updates to these preliminary estimates when
details of the legislation are finalized.
About Standard Register
Standard Register (NYSE: SR), celebrating 100 years of
innovation, is trusted by the world’s leading companies to advance
their reputations by aligning communications with corporate
standards and priorities. Providing market-specific insights and a
compelling portfolio of solutions to address the changing business
landscape in healthcare, financial services, commercial and
industrial markets, Standard Register is the recognized leader in
the management and execution of mission-critical communications.
More information is available at www.standardregister.com.
Safe Harbor Statement
This press release contains forward-looking statements covered
by the Private Securities Litigation Reform Act of 1995. Because
such statements deal with future events, they are subject to
various risks and uncertainties and actual results could differ
materially from the Company’s current expectations.
Factors that could cause the Company’s results to differ
materially from those expressed in forward-looking statements
include, without limitation, our access to capital for expanding in
Core solutions, the pace at which digital technologies erode the
demand for certain legacy products, the success of our plans to
deal with the threats and opportunities brought by digital
technology, results of cost containment strategies and
restructuring programs, our ability to attract and retain key
personnel, variation in demand and acceptance of the Company’s
products and services, frequency, magnitude and timing of paper and
other raw material price changes, the timing of the completion and
integration of acquisitions, general business and economic
conditions beyond the Company’s control, and the consequences of
competitive factors in the marketplace, including the ability to
attract and retain customers. The Company undertakes no obligation
to revise or update forward-looking statements as a result of new
information, since these statements may no longer be accurate or
timely. For more information, see the Company’s most recent Form
10-K and other filings with the Securities and Exchange
Commission.
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