The net surplus of the Daily Mail and General Trust’s (DMGT) DB schemes have increased to £244m, as of 30 September 2018, according to its full-year results.
This represents an increase of £182m in comparison to 30 September 2017, as “the value of the assets increased and there was a reduction in the value of the DB obligation”.
Its total, DB obligations decreased by £4.9m in comparison to last year, to £2.59bn, while its assets increased from £2.75bn to £2.84bn during the same period.
DMGT operates two main DB pension schemes, the Harmsworth Pension Scheme and the Senior Executive Pension Scheme, both of which are closed to new entrants and to further accrual.
The report said: “Funding payments into the main schemes were £13m in the year and are expected to be £13m in FY 2019, in accordance with the existing 2016 funding plan, since the schemes remain in deficit on an actuarial basis.”
The total net pension costs for DMGT between 30 September 2017 – 30 September 2018 were £9.3m, down from £18.2m in the previous year.
Furthermore, the operational risks associated with the DB schemes decreased over FY 2018 as DMGT’s “defined benefit schemes' accounting surplus increased and exposure to future investment and inflation risk was further reduced”.
Full actuarial valuations of the company’s DB schemes are carried triennially by the scheme actuary.
The report stated: “Following the results of the latest triennial valuation as at 31 March 2016, the company [DMGT] agreed a recovery plan involving a series of annual funding payments, of £13m on 5 October 2016 to 2018, £18m on 5 October 2019, £16m on 5 October 2020 to 2025 and £76m on 5 October 2026.
“The company considers that these contribution rates are sufficient to eliminate any deficit over the agreed period.”
DMGT also operates a number of defined contribution schemes.