Standard Register to cut pension contributions by $33M

Dayton-based Standard Register expects to reduce its pension contributions by $33 million through 2016 based on new federal legislation tied to interest rates, according to a media release.

Under provisions of the Highway and Transportation Funding Act of 2014 signed into law last week, Standard Register estimates funding obligations of about $64 million for 2014 through 2016, a $33 million reduction from prior expectations.

The communication services company headquartered at 600 Albany St. had previously expected pension contributions for that period to total $97 million, officials said.

The Highway and Transportation Funding Act allows Standard Register to determine funding requirements for five years using a corporate bond interest rate within 10 percent of the 25-year average of corporate bond interest rates. The legislation effectively stabilizes interest rates used to calculate required funding contributions and minimizes the impact of current low interest rate conditions.

“Interest rate stabilization is very positive for the company,” said Standard Register President and Chief Executive Joseph. P. Morgan Jr. in a statement.

“The new legislation allows us to reduce our expected pension contributions in the near term and invest more in our expanding portfolio of solutions. Standard Register remains committed to fully funding our pension liability,” he said.

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