It was announced today that Independent News & Media (“INM”) and the Trustees of two of INM’s Defined Benefit pension schemes, Independent Newspapers (Ireland) Limited Contributory Pension Plan and Independent Newspapers Management Services, have reached an agreement to commence wind-up of the schemes, following proposals put by the company to the Trustees.
INM will make phased contributions amounting to over €50m, between now and 2023, into Defined Contribution pension schemes for members of the two Defined Benefit pension schemes upon wind-up. The agreement will ensure that all of the deficit repair contributions contained in the 2013 Funding Proposal are guaranteed to be paid.
In addition the company has agreed to make further supplementary payments to ensure pension pots (Transfer Values and deficit repair) are no lower than as at 2013 and to make a special provision for those closer to retirement over the age of 62.
In total, INM has committed to pay over €70m in respect of members of these DB schemes in the period, 2013 to 2023. This is in addition to the 5% of issued share capital transferred to compensate members whose pension entitlements had been reduced as a result of the 2013 restructure.
Under the new agreement, each member will have their own ring-fenced Retirement Account within the Defined Contribution pension scheme. Details of each member’s pension pot and entitlements under the new agreement will be communicated to them in a letter issued over the next couple of days.
INM will continue to make substantial pension payments to its remaining schemes and is projected to invest c€115m in all schemes between 2013 and 2023.
In a joint statement today, it was noted, "These pension changes are not unique to INM. Many companies, including other media organisations providing Defined Benefit pension schemes, have changed from a Defined Benefit to a Defined Contribution model. Over the last ten years the number of Defined Benefit schemes in Ireland has reduced from circa 1300 to circa 600."
Source: www.businessworld.ie
