Business
Def Benefits Pension Schemes
Def Benefits Pension Schemes.
About this update from Stv Group Plc
[{"type":"text","content":"\n SMG PLC\n29 January 2007\n\n\nSMG Defined Benefits Pension Schemes\n\n\nThe Board of SMG announces today the successful conclusion of discussions with\nthe Group's pensions trustees, securing the future of SMG's two defined \nbenefits schemes (the Scottish & Grampian Television Pension Scheme and the \nCaledonian Publishing Pension Scheme).\n\n\nThe completion of the mortality study, carried out in co-operation with a \nnumber of Scottish companies, and subsequent discussions with the SMG pensions \ntrustees have seen the Group's total pensions deficit crystallised as at \n1 January, 2006, at £40m (net of tax). The Board notes that the investment \nperformance of these pension funds has been strong in 2006 and the funds' net \ndeficit as at 31 December, 2006, is estimated to have fallen to approximately \n£22m (net of tax).\n\n\nThis deficit will be funded over a 10 year period with a payment of £4m (net of\ntax) in the first quarter of 2007 followed by nine equal annual payments of\napproximately £3m (net of tax), subject to review every three years thereafter.\nNeither scheme will receive any proceeds as a result of a sale of Primesight,\nbut the Scottish and Grampian scheme will receive 10% of any other sale\nproceeds over the deficit funding period, subject to a cap of a total of £4m. \nThe funding pattern is subject to further discussions with the Trustees and \npossible review in the event of a merger or takeover of the Group taking place.\n\n\nAgreement has also been reached with the funds' trustees to various changes to\nfuture benefits including an amendment of the accrual rate for the Scottish &\nGrampian Television Pension Fund from 50ths to 60ths for future service -\nalthough some scheme members already have an accrual rate of 60ths. It is\nfurther proposed that staff contribution rates to both schemes increase by 2%,\ntaking the Scottish & Grampian Pension Scheme members' contributions to 9% and\nthe Caledonian Pension Scheme members to 8%. SMG has today initiated a\nconsultation process with active pension scheme members, television unions and\nthe relevant staff representative body.\n\nCommenting on the announcement, Donald Emslie, SMG's Acting Chief Executive,\nsaid:\n\n'We've worked very closely with the trustees to reach this agreement, which I\nbelieve is a significant achievement. We reco...