STV reduces pension deficit by £5 million following mortality review

Broadcaster STV has reduced its pension scheme by £5 million following a mortality review.

The 12-month review, by independent financial advisers LEBC Group, involved the development of software that will predict the average life expectancy and health profile of members of the broadcaster’s Caledonian Publishing pension scheme.

The scheme’s 800 pensioners and 200 deferred members participated in the review.

By understanding the overall shape of its members’ life expectancies, the scheme has been able to apply meaningful mortality assumption in place of national averages.

Nick Flynn, longevity director at LEBC Group, said: “This ends the guessing game around scheme mortality by actually establishing the health of the membership.

“It benchmarks those individuals against the enhanced annuity underwriters and providers, and confines today’s postcode-based approach to history.

“This is a sensible move for trustees and members, which addresses the cost concerns of the organisations and the governance issues faced by trustees.

“While the outcome is neutral for pensioners and future beneficiaries, the strong participation is an indication of their backing of the wider principles of strengthening the scheme.”

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