Pirates temporarily cut some employee retirement benefits

The Pirates have suspended contributions to employees’ 401(k) plans as a way to cut costs during the COVID-19 shutdown, as first reported by Ken Rosenthal and Evan Drellich of The Athletic.

Rosenthal and Drellich note the Pirates are the first MLB team to cut benefits, though some clubs, such as the Mets, have already told employees they will cut their salaries.

The Pirates will continue to pay team employees their full salaries through at least May 31 as they continue to evaluate the impact of the coronavirus on the 2020 season.

“We did identify the retirement contributions, at least temporarily, as an opportunity, an area where we might find some savings without too much impact on people and their everyday lives,” Ben Cherington said in a conference call Tuesday. “The full expectation is that contribution will go back into effect as soon as possible. I think that’s a lever, frankly, that other teams either are or will soon or will certainly consider pulling as the year goes on, just because every team is going through that same exercise.”

Commissioner Rob Manfred gave teams the option to cut team employee pay and benefits by suspending employee contracts, starting May 1.

The Pirates' executive leadership team have taken voluntary salary reductions to make sure employees could be paid while the club has zero income during the shutdown.

“[COVID-19] has turned our business upside down,” Cherington said. “Revenues aren’t coming in. Cash is still going out. A big focus of ours in recent weeks has been to try to figure out how to solve for that problem in a way that minimizes impact on our people, their families and our core activities."

The Pirates have also temporarily suspended its fellowship and internship programs.