Glasgow media firm STV Group plc announced it has reached agreement with the trustees of its defined benefit pension schemes — the Scottish & Grampian Television Retirement Benefits Scheme and the Caledonian Publishing Pension Scheme — for the December 31, 2023, triennial funding valuations and deficit recovery plans.

“The combined funding deficit, having allowed for movements in the funding position to 30 June 2024, has reduced to £61m on a pre-tax basis,” said STV.

“This compares to the pre-tax deficit of £116m at the previous valuation, which allowed for movements in the funding position between the 31 December 2020 valuation date and 30 June 2021.

“The duration of the deficit recovery plans is unchanged from the previous valuation with an end date of 31 October 2030. 

“Aggregate monthly cash payments committed by the company will be slightly lower than under the previous agreement. 

“The 2025 contributions will total £10.2m, with annual contributions then increasing at the rate of 2% per annum over the term of the recovery plans, in line with the previous agreement.

“The contingent cash contribution mechanism previously in place has been paused until at least 2028 with no further contingent payments required until then unless the company and the trustees agree otherwise. 

“The recovery plans are designed to enable the schemes to reach a fully funded position, using prudent assumptions about the future, by October 2030.

“The next triennial valuations will take place as at 31 December 2026.”

Lindsay Dixon, STV’s CFO/COO, said: “Agreement on the pension scheme valuations has been reached in an efficient and timely manner, providing certainty to STV, the schemes’ trustees and to our other stakeholders, as well as demonstrating STV’s continued commitment to our former colleagues.

“Retaining the existing recovery period end date, combined with the small reduction in cash payments under the new schedules of contributions and the pause in any contingent cash requirements, reflects the positive progress against plan which the schemes have made in recent years despite markets having been volatile over the period. 

“The new valuation agreements will provide the company with additional flexibility across the full spectrum of capital allocation.”