20th Dec 2016 11:27
LONDON (Alliance News) - STV Group PLC said it has reached an agreement with the trustees of its defined-benefits pension schemes for an 11-year deficit recovery plan, to start at the beginning of next year.
The Scottish broadcaster said that the deficit of the schemes was GBP129.9 million on a pre-tax basis at the end of November, compared to GBP83.0 million on the same basis at the previous settlement date of the end of March 2014. It attributed this to a decrease in gilt yields during the roughly two-and-a-half-year period.
STV has agreed an 11-year recovery plan with monthly payments starting in January. STV said its total payment for 2017 will be GBP8.6 million, with annual payments increasing at a rate of 2% per year over the term of the plan.
STV noted that, in the event of out-performance against its forecast net cash flow, contingent funding payments equivalent to 20% of any out-performance above a benchmark of available cash will be paid to the schemes.
"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," said STV Chief Executive Officer Rob Woodward in a statement.
Shares in STV were up 3.8% at 365.00 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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