Other Postretirement Benefits

We provide health benefits to retired employees (and their eligible dependents) who meet the definition of an eligible participant and certain age and service requirements, as outlined in the plan document. While we offer pre-age 65 retiree medical coverage to employees who meet certain retiree medical eligibility requirements, we no longer provide post-age 65 retiree medical benefits for employees who retired on or after March 1, 2009. We also contribute to a postretirement plan for Guild employees of New York Times Newspaper under the provisions of a collective bargaining agreement. We accrue the costs of postretirement benefits during the employees’ active years of service and our policy is to pay our portion of insurance premiums and claims from our assets.

Net Periodic Other Postretirement Benefit Expense/(Income)

The components of net periodic postretirement benefit expense/(income) were as follows:



(In thousands)	December 28, 2014			December 29, 2013			December 30, 2012
Service cost	$	580		$	1,089		$	957
Interest cost	3,722			4,101			4,985
Amortization and other costs	7,299			4,440			3,328
Amortization of prior service credit	(7,199		)	(13,051		)	(15,112		)
Effect of curtailment	—			(49,122		)	(27,213		)
Net periodic postretirement benefit expense/(income)	$	4,402		$	(52,543	)	$	(33,055	)

In 2012, we sold the Regional Media Group. The sale significantly reduced the expected years of future service for current employees, resulting in a remeasurement and curtailment of a postretirement benefit plan. We recognized a curtailment gain of $27.2 million in the first quarter of 2012, which is included in the gain on the sale within “(Loss)/income from discontinued operations, net of income taxes” in the Consolidated Statement of Operations.

In 2013, we completed the sale of the New England Media Group, consisting of The Boston Globe, BostonGlobe.com, Boston.com, the Worcester Telegram & Gazette (“T&G”), Telegram.com and related properties. As a result of the sale, the Company recorded a $49.1 million post-retirement curtailment gain in 2013, which is included in the gain on sale within “(Loss)/income from discontinued operations, net of income taxes” in the Consolidated Statement of Operations. This gain is primarily related to an acceleration of prior service credits from plan amendments announced in prior years, and is due to a reduction in the expected years of future Company service for employees at the New England Media Group.

In September 2014 and December 2014, the ERISA Management Committee approved certain changes to The New York Times Company Retiree Medical Plan provisions, which triggered a remeasurement under ASC 715-60, “Compensation — Retirement Benefits — Defined Benefit Plans — Other Postretirement.” The changes in the plan provisions decreased obligations by $25.5 million and the change in discount rate as of the remeasurement date increased obligations by $3.6 million. Overall, the remeasurement decreased our obligations by $21.9 million as reflected in other comprehensive income in our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Comprehensive Income/(Loss).

The changes in the benefit obligations recognized in other comprehensive loss were as follows:



(In thousands)	December 28, 2014			December 29, 2013			December 30, 2012
Net actuarial loss/(gain)	$	8,882		$	(13,500	)	$	11,562
Prior service credit	(25,489		)	(1,690		)	—
Amortization of loss	(4,948		)	(4,440		)	(3,328		)
Amortization of prior service credit	7,199			13,051			15,112
Recognition of prior service credit due to curtailment	—			49,122			27,213
Total recognized in other comprehensive (income)/loss	(14,356		)	42,543			50,559
Net periodic postretirement benefit expense/(income)	4,402			(52,543		)	(33,055		)
Total recognized in net periodic postretirement benefit income and other comprehensive (income)/loss	$	(9,954	)	$	(10,000	)	$	17,504

The estimated actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is approximately $5.3 million and $9.7 million, respectively.

In connection with collective bargaining agreements, we contribute to several multiemployer welfare plans. These plans provide medical benefits to active and retired employees covered under the respective collective bargaining agreement. Contributions are made in accordance with the formula in the relevant agreement. Postretirement costs related to these plans are not reflected above and were approximately $18 million in 2014, $20 million in 2013 and $18 million in 2012.

The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive income/loss were as follows:



(In thousands)	December 28, 2014			December 29, 2013
Change in benefit obligation
Benefit obligation at beginning of year	$	100,932		$	120,767
Service cost	580			1,089
Interest cost	3,722			4,101
Plan participants’ contributions	3,834			4,861
Actuarial loss/(gain)	12,091			(13,501		)
Plan amendments	(25,489		)	(1,690		)
Benefits paid	(14,616		)	(14,695		)
Benefit obligation at the end of year	81,054			100,932
Change in plan assets
Fair value of plan assets at beginning of year	—			—
Employer contributions	10,782			9,834
Plan participants’ contributions	3,834			4,861
Benefits paid	(14,616		)	(14,695		)
Fair value of plan assets at end of year	—			—
Net amount recognized	$	(81,054	)	$	(100,932	)
Amount recognized in the Consolidated Balance Sheets
Current liabilities	$	(9,426	)	$	(10,329	)
Noncurrent liabilities	(71,628		)	(90,603		)
Net amount recognized	$	(81,054	)	$	(100,932	)
Amount recognized in accumulated other comprehensive loss
Actuarial loss	$	37,339		$	33,406
Prior service credit	(51,950		)	(33,660		)
Total	$	(14,611	)	$	(254	)

Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows:



	December 28, 2014		December 29, 2013
Discount rate	3.61	%	4.22	%
Estimated increase in compensation level	3.50	%	3.50	%

Weighted-average assumptions used in the actuarial computations to determine net periodic postretirement cost were as follows:



	December 28, 2014		December 29, 2013		December 30, 2012
Discount rate	4.22	%	3.70	%	4.66	%
Estimated increase in compensation level	3.50	%	3.50	%	3.50	%

The assumed health-care cost trend rates were as follows:



	December 28, 2014		December 29, 2013
Health-care cost trend rate	7.20	%	8.00	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2023		2023

Because our health-care plans are capped for most participants, the assumed health-care cost trend rates do not have a significant effect on the amounts reported for the health-care plans. A one-percentage point change in assumed health-care cost trend rates would have the following effects:



	One-Percentage Point
(In thousands)	Increase		Decrease
Effect on total service and interest cost for 2014	$	104	$	(88	)
Effect on accumulated postretirement benefit obligation as of December 28, 2014	$	1,966	$	(1,670	)

The following benefit payments (net of plan participant contributions) under our Company’s postretirement plans, which reflect expected future services, are expected to be paid:



(In thousands)	Amount
2015	$	9,635
2016	8,254
2017	7,604
2018	7,019
2019	6,417
2020-2024	26,038

We accrue the cost of certain benefits provided to former or inactive employees after employment, but before retirement. The cost is recognized only when it is probable and can be estimated. Benefits include life insurance, disability benefits and health-care continuation coverage. The accrued cost of these benefits amounted to $15.9 million as of December 28, 2014 and $16.2 million as of December 29, 2013.

On October 27, 2014, the SOA released new mortality tables that increased life expectancy assumptions. During the fourth quarter of 2014, we adopted the new mortality tables and revised the mortality assumptions used in determining our pension and postretirement benefit obligations. The net impact to our postretirement obligations resulting from the new mortality assumptions was an increase of $4.2 million.