Johnston Press has reduced the deficit of its defined benefit (DB) scheme by £53m following a pension study and changes to its scheme rules.
The regional newspaper publisher announced yesterday that the deficit which stood at £90m a year ago was expected to fall by around £50m as of 2 January 2016, as a result of a study assessing the scheme's liabilities.
In addition the company is now entitled to participate in any surplus when the scheme closes following a change to its rules which were agreed by the trustees. As a result, the application of accounting rule IFRIC 14 which resulted in an additional liability of £3m at 3 January 2015, would not be required.
Collectively these adjustments reduced the DB scheme deficit by some £53m. Johnston said it planned to announce full details of the study when it publishes its preliminary annual results in late March.
Shares in Johnston Press rose by more than 10% following the announcement of a major reduction in its pension deficit.
The Edinburgh-based group, whose titles include The Scotsman and the Yorkshire Post, recently revealed plans to cut editorial jobs to reduce costs following a decline in revenue.
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