Employees of the Irish Independent have accepted the decision to continue contributions to the company pension scheme until 2023.

According to the National Union of Journalists, preventing the immediate closure of the defined benefit pension scheme at Independent Newspapers, Ireland has been welcomed.

Although the union are opposed to the closure of INM’s two DB pension schemes, (Independent Newspapers (Ireland) Limited Contributory Pension Plan and Independent Newspapers Management Services), the decision to continue contributions for a further six years has been received as a “positive development” and a “significant breakthrough” following the trade union’s campaign.

The agreement outlines that company contributions are now guaranteed for the near future, removing uncertainty and ensuring that all contributions will be paid to members before their expected retirement age.

The trustees have negotiated an agreement that prevents the threat of immediate wind-up and guarantees cash contributions of €36.3m payable over the period to 2023 in respect of DB members.

In addition, an ex-gratia payment of €4m has been agreed for members over the age of 62. NUJ acting general secretary Seamus Dooley said: “This should mean that the total funds received by members will be sufficient to enable them to purchase annuities of 80 per cent to 90 per cent of existing pension expectations, depending on their age and the market conditions at the date of their retirement.”

Nonetheless, the Dooley explained that the current agreement now highlights the need for “immediate legislation to prevent solvent companies unilaterally winding up DB company schemes.

"We will be seeking meetings with management and with the trustees. The trustees had already made a commitment to briefing all scheme members on the outcome of their talks with the company.

"The attempt by the company to unilaterally close the scheme last year underlines the need for legislative reform. The NUJ remains concerned at the failure of the government to bring in legislation preventing such attempts by solvent companies.

Concluding, Dooley said that the union is calling “on the minister for employment and social protection, Regina Doherty to clarify when legislation promised by her predecessor, the current taoiseach, will be presented to the Oireachtas. In circumstances where there is all-party agreement on this issue there is no reason why legislation should not have been introduced and passed before the summer recess.”

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