Slaughter and May advised ITV plc (ITV) on the terms of a partnership with the Trustee of the main section of the ITV Pension Scheme (the Scheme). As a consequence, ITV's pension deficit on a funding basis is reduced by £50 million. The partnership arrangements are backed by the London Television Centre, which shall continue to be owned by ITV.

As a result of the Partnership arrangements, ITV will make 25 annual payments, if and to the extent that the Scheme remains in deficit. Following an initial payment of £2.05 million, paid on 31 March 2014, the annual distributions will increase at the rate of 5% per annum. The £50 million reduction in the pension funding deficit effectively reflects the net present value of these payments. The arrangements do not impact the deficit calculated on an IAS 19 basis.

Contacts

Corporate: Paul Dickson (partner), Paul Mudie (associate); Financing: Marc Hutchinson (partner), Oliver Wicker (associate); Real Estate: Jane Edwarde (partner), Samantha Brady (associate), Rachael Ashton (associate); Tax: Gareth Miles (partner), Edward Milliner (associate)