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