As merger talks with UTV drag on, SMG was able to provide good news on the size of its pensions liability, saying it had dropped from £40m at the start of 2006 because of the strong performance of the funds over the year.
Announcing how it would tackle the deficit, it issued the caveat that its plans could be subject to review in the event of the company undergoing a merger or takeover.
SMG intends to pay in £4m this quarter, followed by £3m a year for the following nine years. It also promised to pay 10% of the proceeds of any business disposals into the scheme, subject to a cap of £4m. It excluded its outdoor advertising business Primesight from this arrangement.
The company runs two defined benefits schemes; the Scottish & Grampian Television scheme and the Caledonian Publishing scheme. Many UK companies have closed their defined benefits schemes to new members, leaving them on less generous defined contributions schemes.
SMG is keeping its defined benefits schemes, but slightly reducing the payout on the Scottish and Grampian scheme and asking its members to increase their contributions from 7% to 9%. It has opened a consultation process with staff and unions on the increased contribution proposals, which also involve the Caledonian scheme members paying in 8% rather than 6%.
Donald Emslie, acting chief executive of SMG, said: "We've worked very closely with the trustees to reach this agreement, which I believe is a significant achievement."
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