Trade unions representing employees at ITV are ‘angry’ over its plans to close its defined benefit pension scheme.

Unite, the National Union of Journalists (NUJ) and the Broadcasting, Entertainment, Cinematograph and Theatre Union (BECTU) have ‘reacted angrily’ to the plan to close the scheme to future accrual.

Writing on behalf of the unions, to ITV Pension Scheme secretary to the trustees Kanon Chalcraft, BECTU's supervisory official, Gerry Carr, said: "Many [staff] will be concerned that their retirement plans are at risk of being ruined by the company's proposals."

Therefore, the unions are seeking a meeting with the pension trustees having held a first and 'disappointing' meeting with management on 5 September 2016.

The company's proposals were released to staff and unions in July, just days ahead of confirmation that company profits had risen by 9 per cent to £425m in the first half of 2016.

The unions said that at the meeting on 5 September, managers were reluctant to provide information on the rationale for the proposals and their presentation was short on essential information, including the numbers of deferred and active pensioners.

The unions have also criticised the timing of the release of the proposals, which came at the height of summer when annual leave for various parties prevented an earlier meeting, adding to staff anxiety.

The unions are now consulting their members, and staff generally, as they prepare for further consultations.

In July this year, ITV revealed that its aggregate IAS 19 deficit for its DB pension schemes reduced by £112m over six month period. In its half year results to the 30 June 2016, it reported a deficit of £64m dropping from £176m at 31 December 2015.

The company said the reduction was due to substantial gains in asset values as a result of ITV’s significant holding in long-dated UK gilts and deficit funding contributions of £47m.

“These more than offset the increase in pension liabilities as a result of falling discount rates,” the report stated. In addition, it said pension continue to be paid from the scheme based on actual requirements.

Commenting on the closure, an ITV spokesperson said: "In July we began to consult active members of the defined benefit section of the pension scheme on a proposal to close that section later this year and give them the option of building up benefits in a new ITV defined contribution scheme instead. Any changes would not affect the amount people have already built up under the defined benefits scheme. The consultation is ongoing."

Share Story: