As many as 1,000 employees at department store Arnotts are expected to get a significant payment before Christmas after the trustees of the company's pension fund decided to redistribute a portion of the fund's surplus.

The amount received will vary, depending on how long each member of staff has been with the company, but an estimated €100 million is believed to be up for distribution. The money will be split in equal portion between the fund's members and the company, meaning that about €50 million will be available for the workers.

A pension fund with such a surplus is unusual in today's financial environment, with many company plans currently nursing significant losses following the recent declines in global stock markets. Unlike many other company funds, the Arnotts pension fund was managed internally as opposed to being farmed out to a fund management company.

Last week, a report by consultants Mercer found that the average Irish managed pension fund is currently worth about 5 per cent less than it was at the start of the year.

The news of the Arnotts payout was conveyed to staff last Friday following meetings between the fund's trustees and representatives of the Siptu and Mandate trade unions.

It is believed the final amount of the payment is yet to be finalised, but it is expected to be made before Christmas.

Arnotts employs a total of 1,200 people, but not all will be eligible for the payout.