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 do not 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 The New York Times 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 (Income)/Expense

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



(In thousands)	December 27, 2015			December 28, 2014			December 29, 2013
Service cost	$	588		$	580		$	1,089
Interest cost	2,794			3,722			4,101
Amortization and other costs	5,197			7,299			4,440
Amortization of prior service credit	(9,495		)	(7,199		)	(13,051		)
Effect of curtailment	—			—			(49,122		)
Net periodic postretirement benefit (income)/expense	$	(916	)	$	4,402		$	(52,543	)

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 Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income/(Loss).

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



(In thousands)	December 27, 2015			December 28, 2014			December 29, 2013
Net actuarial (gain)/loss	$	(5,543	)	$	8,882		$	(13,500	)
Prior service cost/(credit)	1,145			(25,489		)	(1,690		)
Amortization of loss	(5,197		)	(4,948		)	(4,440		)
Amortization of prior service credit	9,495			7,199			13,051
Recognition of prior service credit due to curtailment	—			—			49,122
Total recognized in other comprehensive (income)/loss	(100		)	(14,356		)	42,543
Net periodic postretirement benefit (income)/expense	(916		)	4,402			(52,543		)
Total recognized in net periodic postretirement benefit income and other comprehensive (income)/loss	$	(1,016	)	$	(9,954	)	$	(10,000	)

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 $4.1 million and $8.4 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 $16 million in 2015, $18 million in 2014 and $20 million in 2013.

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



(In thousands)	December 27, 2015			December 28, 2014
Change in benefit obligation
Benefit obligation at beginning of year	$	81,054		$	100,932
Service cost	588			580
Interest cost	2,794			3,722
Plan participants’ contributions	4,230			3,834
Actuarial (gain)/loss	(5,543		)	12,091
Plan amendments	1,145			(25,489		)
Benefits paid	(13,221		)	(14,616		)
Benefit obligation at the end of year	71,047			81,054
Change in plan assets
Fair value of plan assets at beginning of year	—			—
Employer contributions	8,991			10,782
Plan participants’ contributions	4,230			3,834
Benefits paid	(13,221		)	(14,616		)
Fair value of plan assets at end of year	—			—
Net amount recognized	$	(71,047	)	$	(81,054	)
Amount recognized in the Consolidated Balance Sheets
Current liabilities	$	(8,168	)	$	(9,426	)
Noncurrent liabilities	(62,879		)	(71,628		)
Net amount recognized	$	(71,047	)	$	(81,054	)
Amount recognized in accumulated other comprehensive loss
Actuarial loss	$	26,599		$	37,339
Prior service credit	(41,309		)	(51,950		)
Total	$	(14,710	)	$	(14,611	)

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



	December 27, 2015		December 28, 2014
Discount rate	4.04	%	3.61	%
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 27, 2015		December 28, 2014		December 29, 2013
Discount rate	3.74	%	4.22	%	3.70	%
Estimated increase in compensation level	3.50	%	3.50	%	3.50	%

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



	December 27, 2015		December 28, 2014
Health-care cost trend rate	7.20	%	7.20	%
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 2015	$	75	$	(63	)
Effect on accumulated postretirement benefit obligation as of December 27, 2015	$	1,769	$	(1,503	)

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
2016	$	8,367
2017	7,684
2018	7,064
2019	6,436
2020	5,949
2021-2025 ⁽¹⁾	24,015


(1)	While benefit payments under these plans are expected to continue beyond 2025, we have presented in this table only those benefit payments estimated over the next 10 years.

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 obligation for these benefits amounted to $12.9 million as of December 27, 2015 and $15.9 million as of December 28, 2014.

In October 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.

For fiscal year 2016, we are changing the approach used to calculate the service and interest components of net periodic benefit cost for benefit plans to provide a more precise measurement of service and interest costs. Historically, we calculated these service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, we have elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The spot rates used to determine service and interest costs ranged from 0.84% to 5.18%. Based on current economic conditions, we estimate that the service cost and interest cost for our other postretirement benefit plans will be reduced by $0.7 million in 2016. We have accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly have accounted for it prospectively.