Former employees of Independent News & Media seeking to transfer their pension entitlements out of the scheme are likely to get only 30 per cent of what they could have expected.

Former staff who have inquired about transferring their entitlements out of the defined benefit scheme have been told they are entitled to less than 20 per cent of what they had built up over their time with the company. However it is understood that this figure could increase to approximately 30 per cent if a deal currently being proposed by the company is put in place.

The company has proposed that employees, and former employees who have not yet reached retirement age, would have their pension benefits slashed by 46 per cent as part of an effort to rescue the defined benefit pension fund, which has a deficit of €162 million.

The proposal would involve the company putting €60 million into the pension scheme over the next 11 years, while the staff would be given a 5 per cent stake in IN&M.

The talks on the proposals are ongoing and it is thought the restructuring proposal is unlikely to be submitted to the Pensions Board by the end of June. If pension scheme was wound up, active and deferred members would receive just 15 per cent of the benefits to which they are entitled, trustees have been told. Transfer values would reflect this figure.

On Monday at an egm in Dublin, shareholders approved the media group’s sale of its South African operations as well as a number of motions associated with a bank debt write-down deal that will see eight banks write off €138 million and get an equity stake in the group.