ITN to face legal challenge over pension cutting plans

News group faces problem over 'rescue plan' measures.

Independent Television News (ITN) is likely to face a high-court challenge over plans to slash pension payments made to the families of retired employees.

The news provider, jointly owned by ITV, Daily Mail & General Trust, United Business Media and Reuters, is currently running a pension deficit close to £56m.

ITN executives want to implement the changes in the current pension scheme as part of a "rescue plan" in order to fill the pension gap.

According to the current scheme, the dependents of an employee who died in retirement are paid an amount based on the size of the annual payment they received on the date of their death. Whereas the rules state that the dependents should be paid based on the amount received on the date of their retirement.

ITN executives believe that if the scheme is aligned with the rules, the news provider may save about £11m.