Staff with at least five years’ service at stv have received a financial boost following the announcement that tparent company, SMG, is to plug a gap in its pension fund that will allow it to continue to pay out pensions calculated on what staff earned during the final year or so of their careers before retirement.
While staff will be required to pay more of their own income – from seven per cent to nine per cent – into the fund, the alternative would have been to follow what many other companies have done with their pension arrangements, ie scrap the ‘final salary pension scheme’ and replace it
with a less generous system.
Another downside is that, instead of 1/50th of their salary, per year of service, going into their pension, it will be 1/60th.
During last year, the deficit improved from