BROADCASTER STV has agreed a 12-year recovery plan with the trustees of its defined benefits pension schemes, writes Scott Wright.

The Glasgow-based firm said the plan, alongside a further de-risked investment strategy, is designed to enable the Scottish & Grampian Television Retirement Benefits Scheme and the Caledonian Publishing Pension Scheme reach a level of funding self-sufficiency at the end of the period.

It noted that this would allow the schemes to operate without the need for further funding from the company and with a level of investment risk which is planned, at that time, to have been reduced to gilts plus 0.5 per cent.

The deficit of the schemes narrowed to £127 million at February 28 from £130m on the previous settlement on November 20, 2016.

The 2019 payment will total £9m with annual payments increasing at 2% per annum over the term of the plan.

STV chief executive 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.”

The company said the next triennial valuation will take place as at 1 January 2021.

Shares in STV closed down 1.5p at 382.5p.