Independent News and Media has denied that its restructuring of its pension arrangements which will reduce the entitlements of staff is intended to pay a dividend to shareholders.
Two weeks ago, the company informed the trustees of the INM defined benefit pension schemes that it was ceasing contributions to the schemes - resulting in an estimated loss of pension benefits of up to 30%.
Staff had already lost 40% of their anticipated benefits under a ten-year pension restructuring plan in 2013.
The total benefit cut is now estimated at 70%.
In a statement, the company described some recent media comment as inaccurate.
It says it is not and never has been the company's intention to renege on the 2013 agreement with the pension trustees.
It says that funding currently made under the defined benefit schemes will continue to be made to the defined contribution scheme - adding that the total projected pension investment from 2013 to 2023 is around €115m.
INM also states that an EGM resolution to permit a capital reduction on the company balance sheet was driven by the huge challenges that it faces, and that its strategy is to reposition the business through acquisitions.
The statement says the company has no plans to pay dividends - and that any suggestion that there is a windfall for shareholders arising from the EGM decision is wrong.
It says the capital restructure creates a nil reserve balance in INM and any dividends will have to be paid from future generated profits.
INM also says that closing the defined benefit schemes does not improve the cash position of INM - and that decisions in relation to pensions are a matter solely for the board and management, not shareholders.
The company says a defined contribution pension scheme will give each member their own ring-fenced pot of money leading to a far more sustainable pension arrangement, more equitable outcomes and greater security and control for members over their pension savings.
INM also says it is not alone in facing pension difficulties, noting that over a ten-year period, the number of defined benefit schemes has fallen from around 2,000 to around 600.
Union sources dismissed the INM statement.
They said the company was reneging on the 2013 agreement, as that agreement provided for funding to continue to flow to a defined benefit scheme, not a defined contribution scheme.
It is understood that the pension fund trustees are due to meet the Pensions Authority tomorrow.
