STV Group said it reached agreement with the trustees of the company’s defined benefits pension schemes — the Scottish & Grampian Television Retirement Benefits Scheme and the Caledonian Publishing Pension Scheme — “for the 1 January 2015 triennial actuarial funding valuations and recovery plans.”
STV said: “The deficit on an actuarial basis was £129.9 million on a pre-tax basis at 30 November 2016 compared to £83.0 million on a pre tax basis at the previous settlement date of 31 March 2014.
“This differential is principally due to a decrease in gilt yields during this period.”
STV said an 11 year recovery plan has been agreed with monthly payments commencing in January 2017.
The 2017 payment will total £8.6 million with annual payments increasing at the rate of 2% per annum over the term of the plan.
“Additionally, in the event of outperformance against the company’s sensitised forecast net cash flow, contingent funding payments equivalent to 20% of any outperformance above a benchmark of available cash will be paid to the schemes,” said STV.
“Sensitised forecast net cash flow is defined as available cash flow pre-pension deficit funding payments and returns to shareholders.”
The next triennial valuation will take place as at 1 January 2018.
STV CEO Rob Woodward said: “The pension scheme valuation agreement provides certainty to both the group and the schemes’ trustees and demonstrates the continued commitment of the group to support the schemes.”