ITN to face legal action over pensions

ITN is reportedly bracing itself for a High Court legal challenge over plans to cut the pension payments made to the families of former employees.

The news provider wants to introduce urgent changes to its pensions as part of a "rescue plan" to tackle the scheme's £56m deficit, reports The Guardian.

ITN chief executive John Hardie has written to staff informing them of a "discrepancy" in the scheme that has resulted in next of kin being overpaid after employees died in retirement.

The company is trying to change the way the scheme is administered, but its trustees are preparing to challenge the move at the High Court.

ITN managers believe that around £11m could be saved by changing the way the pension scheme is run.

However, the trustees believe that the move could result in the typical employee's pension payments being reduced by up to a half.

The trustees are likely to apply for a hearing at the High Court by the end of 2010, but it could take a year before the dispute is resolved.

A spokeswoman for ITN said: "The recovery plans agreed with the trustees should provide reassurance to members that there is an affordable way to fund the scheme for the long term."

ITN will publish its annual report this week, which is expected to reveal that the firm made a £4.2m loss in 2009, compared with a pre-tax profit of £4.4m the previous year.

Meanwhile, five trade unions, including the NUJ and Bectu, are threatening the BBC with strike action over plans for major cutbacks to its final salary pension scheme.