INM staff told pensions will be reduced by 39%

Independent News and Media has written to pension holders to inform them that they will only be receiving a fraction of what they are owed from the company’s defined benefit pension scheme.

Current staff who have yet to retire were told that they could expect to see 39% of their pension cut.

The trustees of the pension fund described the pension fund as being in “a very serious situation,” as they were forced to submit a new plan to the Pensions Board on how they planned to fund the scheme.

The letter said: “Unfortunately our plan (pension) has a deficit of €127m and does not have sufficient assets to meet its past service liabilities and we are now required, by law, to submit a remedial plan (or funding proposal) to the Pensions Board as soon as possible.

“The past service deficit can only be remedied through re-financing and/or benefit restructuring. Clearly this is a very serious situation,” the letter said.

The trustees ruled out winding up the plan as to do so would see beneficiaries of the scheme only receiving “benefits valued at only c30% of their value. As a result, the company and the trustees have ruled out winding up the plan,” the letter stated.

The letter lays out how Independent News and Media will inject €5.6m a year into the scheme over 11 years until 2023, while the scheme will take a 5% equity stake in INM.

The trustees said that they regretted that beneficiaries would receive lower payments due to the new arrangements that have to be put in place.

“We, the trustees of the plan, are very disappointed that we have to make these changes to your pension arrangements and regret the losses that you, as a member of the plan, will suffer,” the letter said.