ITV announces pension deal to reduce deficit

31st Mar 2014 15:08

ITV's shares climbed after the broadcaster announced a deal with the trustees of its pension scheme to reduce its deficit by 50m pounds.Under the deal, backed by its London Television Centre property, the pension scheme will receive 25 annual payments if it remains in deficit. It will start with a £2m payment on Monday, before rising by 5% a year provided it remains in deficit. The £50m reflects the current value of those payments, and ITV will receive tax relief on this amount in 2014. "Over the last few years ITV has made significant progress in managing its pension risk and this is another step forward in that process," said Finance Director, Ian Griffiths."Today's agreement reduces ITV's pension deficit on the basis that drives our cash funding whilst retaining operation flexibility with respect to the London Television Centre. It represents a positive deal for members of the defined benefit pension scheme and for ITV shareholders."Shares rose 2.16% to 193.50p at 15:08 on Monday.RD