MNI » Topics » Termination due to Disability

This excerpt taken from the MNI DEF 14A filed Mar 31, 2009.

Termination due to Disability

 

If, during the term of the agreement, Mr. Pruitt’s employment is terminated because of disability, he is entitled to a supplemental disability benefit in an amount equal to 60% of his base salary at the rate then in effect until the third anniversary of the effective date of termination of employment or until disability benefits under McClatchy’s group insurance plan are discontinued, whichever is earlier, reduced by all other disability benefits that are payable to him under McClatchy’s group insurance plan and all federal or state insurance programs. Assuming termination on December 28, 2008, the amount of this benefit would be $660,000 payable for each of the three years, for a total benefit of $1,980,000. McClatchy has insurance coverage for the full amount of these payments. As a result, if Mr. Pruitt terminated employment on account of disability on December 28, 2008, these payments would be made from the long-term disability insurance policy, the premiums for which are included in the All Other Compensation column of the Summary Compensation Table above.

 

In addition, pursuant to the terms of the agreement, if Mr. Pruitt’s employment is terminated because of disability, his group insurance benefits are to be continued for three-years or, if of shorter duration, as long as any disability benefit is payable. The premium cost of three years of such continued coverage as of December 28, 2008 would have been $81,438, based on the cost to McClatchy for such premiums on December 28, 2008.

 

This excerpt taken from the MNI DEF 14A filed Mar 28, 2008.

Termination due to Disability

 

If, during the term of the agreement, Mr. Pruitt’s employment is terminated because of disability, he is entitled to a supplemental disability benefit in an amount equal to 60% of his base salary at the rate then in effect until the third anniversary of the effective date of termination of employment or until disability benefits under McClatchy’s group insurance plan are discontinued, whichever is earlier, reduced by all other disability benefits that are payable to him under McClatchy’s group insurance plan and all federal or state insurance programs. Assuming termination on December 30, 2007, the amount of this benefit would be $660,000 payable for each of the three years, for a total benefit of $1,980,000. McClatchy has insurance coverage for the full amount of these

 

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payments. As a result, if Mr. Pruitt terminated employment on account of disability on December 30, 2007, these payments would be made from the long-term disability insurance policy, the premiums for which are included in the All Other Compensation column of the Summary Compensation Table above.

 

In addition, pursuant to the terms of the agreement, if Mr. Pruitt’s employment is terminated because of disability, his group insurance benefits are to be continued for three-years or, if of shorter duration, as long as any disability benefit is payable. The premium cost of three years of such continued coverage as of December 30, 2007 would have been $73,890, based on the cost to McClatchy for such premiums on December 30, 2007.

 

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