Independent News & Media PLC Pension - Joint Statement (6919L)
July 21 2017 - 2:00AM
UK Regulatory
TIDMINM
RNS Number : 6919L
Independent News & Media PLC
21 July 2017
Joint Statement - Independent News & Media and INM Pensions
Trustees
Dublin 21 July 2017: 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, confirm that they
have reached an agreement to commence wind-up of the schemes,
following proposals put by the company to the Trustees. The
agreement will bring certainty to the Company regarding its future
obligations in respect of its principal Irish newspaper publishing
business.
Under the agreement INM will make phased contributions amounting
to over EUR50m, 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 EUR70m 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. This will give all members greater security and
control over their pension savings, in a far more sustainable
pension arrangement.
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. Information meetings will also be held
with INM staff and a Helpline, operated on INM's behalf by Mercer,
will be made available to all scheme members.
INM will continue to make substantial pension payments to its
remaining schemes and is projected to invest cEUR115m in all
schemes between 2013 and 2023.
There is no change to INM's dividend policy. The agreement with
the Trustees will enable the Company to re-engage with its capital
restructure plan as submitted to the shareholders at an EGM in
December 2016. Among other matters, the capital restructure plan
placed before shareholders would ensure any future resumption of
normal dividends by the Company would be payable out of future
earnings. The Company is pleased that any eventual application to
the High Court will be unopposed by the Trustees.
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.
(Ends)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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