STV Group agrees recovery plan for £127m deficit

The trustees of STV Group’s defined benefit pension schemes have agreed a 12-year plan to clear its £127m pension deficit.

The group's two schemes, the Scottish and Grampian Television Retirement Benefits Scheme and the Caledonian Publishing Pensions Scheme, will receive £9m in 2019 with annual payments increasing by 2 per cent over the recovery period.

The media company had an actuarial deficit of £127m on 28 February 2019, compared to £130m deficit on 30 November 2016.

Commenting on the recovery plan, STV Group CEO, Simon Pitts, 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.”

Furthermore, the group said it would contribute 20 per cent of any out performance against its forecast net cash flow, following any deficit recovery payments and shareholder returns, which amounted to £1.4m in 2018.

STV Group added that it will continue to work towards ensuring the scheme to operate without need for further funding from the company, with a level of investment risk oh gilts plus 0.5 per cent.

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