The latest update from the Pensions Regulator;
All members of the Box Clever pension scheme are expected to receive their pension benefits in full following an in principle deal agreed between The Pensions Regulator (TPR) and ITV.
TPR’s Interim Executive Director of Regulatory Compliance, Mel Charles said: “Following this long running case, we are glad that there is an expected settlement under which ITV will accept the Box Clever pension scheme members into the ITV scheme.
“Today’s news illustrates how we will use our powers to protect savers and robustly pursue matters, through the courts if necessary, to reach a satisfactory resolution.”
Box Clever was formed in 2000 as a joint venture between the TV rental businesses of Granada (now ITV) and Thorn (now Carmelite). Respective employees were transferred to the new company and enrolled in the Box Clever pension scheme.
TPR opened an anti-avoidance investigation following the collapse of Box Clever in 2011. Prior to the collapse, ITV extracted significant value from the joint venture. Following a lengthy legal battle, TPR issued Financial Support Directions (FSDs) to ITV and associated entities in 2020 requiring them to provide reasonable financial support for the Box Clever scheme. When agreement could not be reached, TPR issued further proceedings seeking a Contribution Notice for the scheme’s full buy-out deficit (most recently estimated as around £76 million).
The agreement in principle will see all of the 2,800 members (both ex Granada and ex Thorn) transferred to the ITV Pension Scheme. Members, who have been receiving benefits at Pension Protection Fund (PPF) levels since 2014, will now receive full scheme benefits and back payments.
Assuming the transfer goes ahead as planned TPR has agreed to cease its regulatory action against ITV and associated entities. This agreement is supported by both the trustees of the Box Clever scheme and the PPF.
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