mast image

Special Report

Impact investing


ITV may end final salary pension scheme

UK - UK commercial broadcaster ITV, facing a £5bn takeover bid from NTL, is planning to close its €1.758bn (£1.12bn) final salary pension scheme also to existing members, in favour of a career-average scheme.

The firm said today: "ITV, in common with many other employers, is reviewing its DB [defined benefit] pension provision and we have started the process of consultation." It already closed the DB scheme to new members in July.

The move, which is likely to ease the broadcaster's estimated £325m pension deficit, would affect about 1,500 of the firm's 6,000 employees, according to news reports yesterday.

Broadcasting unions, unhappy about the plans, are expected to fight the proposals. Bectu, representing 27,000 members, has already opposed pension changes at TV news provider ITN last month.

Last week UK cable firm NTL said it had approached ITV with a "highly tentative" merger bid. However, it appeared today that NTL would face a £330m pension bill.

The news came after the pensions regulator warned that any company which buys ITV would be expected to inject a "significant" sum into the broadcaster's scheme to safeguard staff benefits.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

Begin Your Search Here