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LONDON (Alliance News) - Television and media company STV Group PLC Wednesday said it has agreed to cut the deficit on its defined benefit pension schemes over 11 years rather than the 18 years agreed previously, as it struck a new deal with the trustees of the schemes.
STV has two defined benefit schemes - the Scottish & Grampian Television Retirement Benefits Scheme and the Caledonian Publishing Pension Scheme.
The deficit on the schemes was GBP83 million on March 31, down from GBP135 million when the deficit was valued under a triennial actuarial funding valuation done on January 1, 2012. The fall is down to increases in asset values within both schemes as well as deficit funding payments that STV has made in the period.
STV said it has now agreed with the schemes' trustees that it will pay GBP5.5 million to reduce the deficit in 2014, of which it already paid GBP4.7 million in January, and then between GBP7.0 million and GB7.5 million over the following 10 years to the end of 2025.
"The pension scheme valuation agreement provides certainty to both the group and the schemes' trustees and demonstrates the continued commitment of the group to support the schemes," STV Chief Executive Rob Woodward said in a statement.
STV shares were down 4.5% at 351.34 pence early Wednesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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