Staff at Independent News and Media have been told that they face a 46% reduction in pension benefits.

The company is to put €60m into the pension scheme with a total of €80m going into the entire island of Ireland fund to address a deficit in the scheme.

The pension fund would also be given a 5% stake in Independent News & Media.

The proposals would result in 54% of expected benefits being paid.

However, if the deal on offer is not accepted and the pension scheme is wound up, only 15% of benefits would be paid.

Any changes to the pension fund will have to be agreed by trustees, who were given the proposals earlier this week.

The plans will also have to be agreed with the Pensions Board later this year.