Settlement of triennial valuation of defined benefit pension 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 2018 triennial actuarial funding valuations and recovery plans.
The deficit on an actuarial basis was £127m on a pre tax basis at 28 February 2019 compared to £130m on a pre tax basis at the previous settlement date of 30 November 2016.
A 12 year recovery plan has been agreed with monthly payments unchanged from the previous recovery plan.  The 2019 payment will total £9.0m 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.  This is unchanged from the previous valuation methodology and has resulted in a £1.4m additional cash contribution for 2018 (2017:£nil) which will be paid in April 2019.
The recovery plan and further derisked investment strategy are designed to enable the schemes to reach a level of funding self sufficiency at the end of the recovery plan period, allowing the schemes to operate without the need for further funding from the Company and with a level of investment risk which is planned, at that time, to have been reduced to gilts plus 0.5%.
The next triennial valuation will take place as at 1 January 2021.
Simon Pitts, Chief Executive Officer, said: “This pension scheme valuation agreement provides certainty to both STV and the schemes’ trustees by putting the schemes on a clear path to self-sufficiency while demonstrating STV’s continued commitment and support.”
STV Group plc
Katie Martin, Communications Executive
Tel: 0141 3003109
Anna Hendry, PR Executive
Tel: 0141 3003830
Geoffrey Pelham-Lane, Partner
Tel: 0203 757 4985