News

Statement re settlement of triennial valuation of pensions schemes

Tagged in: RNS Announcements
STV Group plc today announces that agreement has been reached 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.
 
The deficit on an actuarial basis was £129.9m on a pre tax basis at 30 November 2016 compared to £83.0m 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.
 
An 11 year recovery plan has been agreed with monthly payments commencing in January 2017.  The 2017 payment will total £8.6m 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.  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.
 
Rob Woodward, Chief Executive Officer, 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.”

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Enquiries:
 
STV Group plc
Eleanor Marshall, PR & Communications Manager
Tel: 0141 3003670