Publication company Reach plc has agreed an updated deficit recovery contribution rate and schedule for the MGN Pension Scheme, following the conclusion of its 2022 triennial valuation.

The valuation showed that the scheme had a deficit of £219m at the end of December 2022.

This deficit is expected to be removed through a schedule of contributions, including annual payments of £46m a year from January 2023 to January 2028.

The previous schedule of contributions for the MGN scheme included payments of £40.9m a year from 2023 to 2027.

Reach noted that discussions were ongoing with its other pension schemes in relation to the 2022 triennial valuations.

The firm expects those valuations to be concluded by the 31 March 2024 due date.

In total, the group had six defined benefit pension schemes: the MGN Pension Scheme, the Trinity Retirement Benefit Scheme, the Midland Independent Newspapers Pension Scheme (MIN Scheme), the Express Newspapers 1988 Pension Fund (EN88 Scheme), the Express Newspapers Senior Management Pension Fund (ENSM Scheme) and the West Ferry Printers Pension Scheme (WF Scheme).

The trustees of the ENSM Scheme purchased a bulk annuity at no cost to the group in 2022.

Reach paid £9.6m to the WF Scheme in 2021, which, together with the payment of £5m made in 2020, enabled the trustees to purchase a £120m bulk annuity, meaning that the scheme now has all pension liabilities covered and no further funding is expected.

In total, group contributions in respect of the remaining four DB pension schemes in the first half of 2023 were £23.3m, up from £23m in H1 2022.

However, contributions in 2023 are expected to hit £55.8m under the current schedule of contributions for the four schemes, with a further £32.5m of group contributions due to be paid in the second half of the year.

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