O2 and Virgin Media announcement
Completion of the Joint Venture combining the Telefonica UK and Virgin Media UK businesses took effect on 1 June 2021, following publication of the Competition and Markets Authority's decision to approve the creation of the Joint Venture.
The Trustee and the Company (Telefonica UK Limited) are pleased to announce that a funding agreement has been reached following the completion of the Joint Venture. The funding agreement addresses the Joint Venture and also concludes the scheduled triennial valuation of the Defined Benefit (DB) or ‘final salary’ section of the Plan which has an effective date of 30 September 2020. As a result, the Company will pay a total of £425m into the Plan by the end of 2022, an amount agreed with the aim of funding it to its self-sufficiency target by 2022, seven years earlier than previously planned.
We believe that this is a positive step in protecting the interests of the members of the Plan. Please note that the creation of the Joint Venture does not affect the accrued benefits that members have in the Plan.
Finally, please note that no changes are expected to either the Defined Contribution ‘Own Trust’ section of the Plan, or the new Master Trust pension scheme (where some members have recently been transferred to), both of which are now administered by Legal & General.