Standard Register Expects to Reduce Pension Contributions Through 2016 Under New Legislation
DAYTON, OH—August 11, 2014—Standard Register today provided an update on pension funding expectations for 2014 through 2016 based on provisions in the Highway and Transportation Funding Act of 2014 signed into law last week.
Under the Highway and Transportation Funding Act provisions, Standard Register estimates funding obligations of approximately $64 million for 2014 through 2016, a $33 million reduction from prior expectations. The company had previously expected pension contributions for 2014 through 2016 to total $97 million.
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 Joseph. P. Morgan, Jr. "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."