Business
Confirmation of SDN pension p
Confirmation of SDN pension p.
About this update from Itv Plc
[{"type":"text","content":"\n RNS Number : 2673J ITV PLC 26 March 2010 \n \n\nITV plc confirms SDN pension partnership and new pension funding agreement\n \nITV and the Trustee of the main section of the ITV Pension Scheme (the \"Scheme\") have concluded a Partnership (the \"Partnership\"), backed by SDN, and, as a consequence, ITV's pension deficit on a funding basis is reduced by £124 million. \n \nIn addition, ITV and the Trustee have agreed the level of deficit funding contributions ITV will make to the Scheme through to 2014. \n \nSDN pension partnership\nUnder the Partnership arrangements, ITV has committed to making a payment to the Scheme of up to £150 million in 2022, if and to the extent that the Scheme remains in deficit. In addition, the Partnership will make an annual distribution of £8.4 million to the Scheme for 12 years from 2011. \n \nThe Partnership's interest in SDN will provide collateral for these payments. SDN's revenues, profits and cashflows will continue to be consolidated in ITV's accounts and ITV will retain day-to-day operational control of SDN. \n \nHaving acquired the partnership interest, ITV's pension deficit on a funding basis is reduced by £124 million (effectively reflecting the present value of the annual distributions and the £150 million payment). The agreement does not impact the deficit calculated on an IAS 19 basis. \n \nDeficit funding contributions\nITV has also agreed with the Trustee the level of contributions to the Scheme through to 2014. \n \nFrom 2011, ITV will make deficit funding contributions of £35 million per annum. \n \nFrom 2012, ITV's annual contribution will be increased by £5 million, unless during the previous year ITV has implemented initiatives which reduce the Scheme's deficit by at least £10 million, compared with the level absent such initiatives.\n \nIn addition from 2012, if ITV's reported earnings before interest, tax and amortisation (\"EBITA\") before exceptional items exceed £300 million, ITV will increase this contribution by an amount representing 10% of EBITA over the threshold level. \n \nThese arrangements supersede ITV's previous commitment to make annual contributions of £30 million per annum through to 2013, ahead of the next valuatio...