On the go: The trustees of ITV’s defined benefit schemes have agreed to a deficit repayment contribution delay, amid action from the broadcaster to mitigate the impact of Covid-19.
In its first-quarter trading statement, published on Wednesday, ITV stated that it has taken action to tightly manage cash flow in 2020, in part through agreements with ITV pension trustees and tax authorities to delay at least £150m of payments out of the first half of 2020 and into the second half of the year and in 2021.
At the end of March, the the Pensions Regulator launched new guidance aimed at helping employers freeze their DB obligations for three months in response to the economic fallout from coronavirus.
According to its latest annual report, the broadcaster has three DB schemes, with the largest – the ITV Pension Scheme – having a deficit of £470m in 2017.
In 2019, the broadcaster paid £74m in deficit funding contributions, and was expecting payments to the schemes to be in line with this figure in 2020, at around £75m.
A spokesperson for the ITV Pension Scheme said: “Given the unprecedented circumstances posed by the Covid-19 pandemic, the trustee has granted ITV permission to defer deficit recovery payments due to the scheme for a period of three months.
“In line with guidance from TPR, the trustee is satisfied that it has secured appropriate mitigatory measures to ensure that members’ interests are protected, and that the deferred contributions are repaid within the timeframe of the current recovery plan. In the meantime, all pensions and other benefits will continue to be paid as normal.”
Carolyn McCall, ITV chief executive, said: “ITV has taken swift and decisive action to manage and mitigate the impact of Covid-19, by focusing on our people and their safety, and by continuing to reduce costs and tightly manage our cash flow and liquidity.”
