ITV cuts pension deficit with property partnership

LONDON, March 31 Mon Mar 31, 2014 7:17am EDT

LONDON, March 31 (Reuters) - ITV, Britain's largest free-to-air broadcaster, said on Monday it had agreed a deal with the trustees of its pension scheme to reduce its deficit by 50 million pounds ($83 million), backed by its London Television Centre property.

As a result of the new deal, the scheme will receive 25 annual payments if it remains in deficit. Following a payment of 2.05 million pounds on Monday, the annual distributions will increase at the rate of 5 percent per year.

The 50 million pounds reduction reflects the net present value of the payments, with ITV receiving tax relief on this amount in 2014.

Ownership of London Television Centre, home to many ITV shows, remains with the ITV, the company said. ($1 = 0.6011 British Pounds) (Reporting by Kate Holton, Editing by Paul Sandle)

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