Gannett on Wednesday announced in a memo it will freeze employee pensions, as well as including a shift in how much it will match for 401(k) plans, with workers earning main Gannett stock for each contribution to their 401(k) funds, Editor & Publisher reported.

The memo, sent from Gannett CEO Craig Dubow, comes just days after Gannett announced it will write down its assets by US$2.5 billion to $3 billion in this quarter, due to its depreciating value in the United States and United Kingdom.

Freezing pensions will save the USA Today publisher $90 million, and the company will use $60 million in savings for the 401(k) fund, Tara Connell told Reuters, E&P reported.

The e-mailed memo from Dubow, sent to E&P, states:

“Beginning Aug. 1, Gannett will freeze the Gannett Pension Plan and improve the Gannett 401(k).

Freezing the Pension Plan means:

- On Aug. 1, your pension plan benefit will be frozen. It will not continue to grow (based on your years of service and final pay) as it did in the past. - All your benefits currently in the Pension Plan remain there for your retirement. - A cost-of-living allowance will be applied to your frozen benefit to help protect it from inflation.

Gannett is improving the 401(k). The new match for the Gannett 401(k), beginning Aug. 1, will be:

- Gannett contributes $1 in Gannett stock for every $1 you contribute (up to 5% of your pay). - Most Gannett employees now receive a 50-cent match for every $1 (up to 6% of your pay). - This is a large improvement in the 401(k) match.

It is important to know that even with the improved match in the 401(k), nearly all employees at every level will see a diminished benefit.

Freezing the pension plan benefit is another important step in keeping Gannett financially strong. This change will mean a considerable savings for the company even after returning significant dollars to employees through the enhanced 401(k).

I want to stress that today's benefit change action is unrelated to Monday's announcement that we will record an approximately $2.3 billion to $2.8 billion, after tax, non-cash impairment charge. They are, however, driven by the same underlying cause: the very difficult business environment.

We are not alone in making the benefit changes. There is a strong, worldwide trend to limit benefits in pension plans and shift to a more 401(k) based system. Also, enhancing the 401(k) plan makes us more attractive to those employees who especially value these portable, self-directed plans.

As a result of these changes, it is now even more important for employees to take responsibility for their own retirement. An important beginning is enrolling and contributing as much as you can to the improved 401(k).”