The IAS 19 accounting deficit for Trinity Mirror’s defined benefit pension schemes fell by £59.2m in the 26 weeks up to 2 July 2017.

In its half year results, the Group’s DB deficit fell from £466m to £406.8m, with the Group contributing £20.6m across its DB schemes in the period. It said the decrease was driven by strong asset returns and the benefit of a decrease in future mortality assumptions, which more than offset a further reduction in the discount rate. As a 2 July 2017, the total liabilities for its DB schemes were £1.9bn and it had assets of £1.5bn.

Despite the fall in the deficit, Trinity Mirror said it will not have an immediate impact on the agreed funding commitments. The triennial valuation date of the schemes is 31 December 2016 and the valuations, which are currently in progress, are required to be completed by March 2018.

At the schemes’ last triennial valuation, as at 31 December 2013, there was a deficit of £336.7 for the Mirror Schemes, £31.9m for the Trinity Scheme and £26.7m for the MIN Scheme. As part of the agreement of the valuations, deficit funding contributions were agreed at £36.2m for 2015, 2016 and 2017. Contributions were agreed at around £36m from 2018 to 2023 and then reduce to around £21m for 2024 and 2025 after which contributions were due to cease. Trinity Mirror expects to be out of deficit by 2027, due to a combination of contributions and asset returns.

In addition, the Group agreed that in respect of dividend payments in 2015, 2016 and 2017 that additional contributions would be paid at 50 per cent of the excess if dividends in 2015 were above 5 pence per share. For 2016 and 2017 the threshold increases in line with the increase in dividends capped at 10 per cent per annum.

Of the £20.6m contributed in the period, £14.8m was paid to the Mirror Schemes, £3.5m to the Trinity Scheme and £2.3m to the MIN Scheme.

In addition to its DB schemes, Trinity Mirror operates the Trinity Mirror Pension Plan, which is a defined contribution scheme. The assets of the scheme are held separately from those of the Group in funds under the control of trustees. In the 26 weeks up to 2 July, contributions of £5.8m were paid to its DC scheme.

Share Story: