0700hrs, Wednesday 2 October
2024
STV Group plc reaches
agreement on pension triennial funding valuations
·
Funding deficit reduces to £61m from £116m in 2020
valuation
·
Aggregate monthly cash contributions slightly
lower
·
Contingent cash contribution mechanism paused
until at least 2028
STV Group plc today announces that
it has reached agreement with the trustees of its defined benefit
pension schemes (the Scottish & Grampian Television Retirement
Benefits Scheme and the Caledonian Publishing Pension Scheme) for
the 31 December 2023 triennial funding valuations and deficit
recovery plans.
The combined funding deficit, having
allowed for movements in the funding position to 30 June 2024, has
reduced to £61m on a pre-tax basis. This compares to the
pre-tax deficit of £116m at the previous valuation, which allowed
for movements in the funding position between the 31 December 2020
valuation date and 30 June 2021.
The duration of the deficit recovery
plans is unchanged from the previous valuation with an end date of
31 October 2030. Aggregate monthly cash payments committed by
the Company will be slightly lower than under the previous
agreement. The 2025 contributions will total £10.2m, with
annual contributions then increasing at the rate of 2% per annum
over the term of the recovery plans, in line with the previous
agreement.
The contingent cash contribution
mechanism previously in place has been paused until at least 2028
with no further contingent payments required until then unless the
Company and the trustees agree otherwise.
The recovery plans are designed to
enable the schemes to reach a fully funded position, using prudent
assumptions about the future, by October 2030.
The next triennial valuations will
take place as at 31 December 2026.
Lindsay Dixon,
CFO/COO, said: "Agreement on the pension scheme valuations has been reached in an efficient and
timely manner, providing certainty to STV, the schemes' trustees
and to our other stakeholders, as well as demonstrating STV's
continued commitment to our former colleagues. Retaining the
existing recovery period end date, combined with the small
reduction in cash payments under the new schedules of contributions
and the pause in any contingent cash requirements, reflects the
positive progress against plan which the schemes have made in
recent years despite markets having been volatile over the
period. The new valuation agreements will provide the Company
with additional flexibility across the full spectrum of capital
allocation."
Contact:
Kirstin Stevenson, Head of
Communications, STV - 07803 970106 / Kirstin.stevenson@stv.tv