Publishing group, Reach’s aggregate defined benefit pension deficit fell by £400,000 in the six months to 30 June 2019, ending with a deficit of £348.2m.

The total deficit for the six schemes dropped from 348.6m to £348.2m, with Reach stating that group contributions, strong asset returns, and a reduction in the expected rate of mortality improvements contributed to the decrease. However, it said this was offset by an unfavourable movement in financial assumptions driven by a fall in the discount rate and higher inflation increases.

Over the period, Reach contributed £24.5m, a lot less than the £65.6m figure contributed in the same period in 2018, although that included a £41.2m contribution to the Express and Star schemes relating to the acquisition.

Contributions have been agreed at £48.9m per annum for 2019 and 2020, £56.1m per annum for 2021 – 2023, £55.3m for 2024 – 2026 and £53.3m for 2027. It said that changes in the accounting deficit do not have an immediate impact on the agreed funding commitments. The next valuation for funding of all six pension schemes will be as at 31 December 2019 and this is required to be completed by 31 March 2021, although we anticipate this to be completed by 31 December 2020.

All of the group’s six DB schemes are closed to future accrual. These are the MGN Pension Scheme, Trinity Retirement Benefit Scheme, Midland Independent Newspapers Pension Scheme, Express Newspaper 1988 Pension Fund, Express Newspapers Senior Management Pension Fund and the West Ferry Printers Pension Scheme.

With regards to defined contribution, the group operates the Reach Pension Plan (RPP) for eligible employees. The two group personal pension plans for the Express and Star were closed on 31 March 2019, with all members given the opportunity to join the RPP from 1 April 2019. The group paid £8.6m in contributions in the half-year period.

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