STAFF AT Independent News & Media have been told of significant changes to pension arrangements in the future in a bid to tackle a €120 million financial deficit.
At a briefing by trustees of the pension plan yesterday, staff were told that it was proposed to cap liabilities on the existing defined benefit pension scheme, which guarantees a specific payout on retirement.
In the future, pension arrangements for staff will be based on a defined contribution arrangement on which the level of benefit is determined by the market.
In essence, existing staff would have a hybrid pension arrangement involving a mixture of defined benefit and defined contribution components.
In addition, it is proposed that the final salary figure on which pension payment would be based would be recalibrated to a lower level.
It is understood that existing pensioners would not be affected by the proposed changes. However, it is understood that indexation arrangements for some pensions would be ended.
The Dublin Print Group of Unions said last night that it would be seeking an urgent meeting with the company about the proposals.
Irish secretary of the National Union of Journalists Séamus Dooley said last night the meeting yesterday was just the start of a process and that there had been no advance warning given to unions.
He said the unions would seek urgent talks with the company about the proposals. Mr Dooley said the changes proposed were “very significant” and had long–term implications for serving staff and deferred pensioners.