Annual Report 2016 - Page 79

Annual Report 2016 Notes to the Financial Statements Additional disclosures regarding the Group’s defined benefit pension scheme are required under provisions of FRS 102. Valuations each year are undertaken by a qualified actuary using assumptions that are consistent with the requirements of FRS 102. The market value of investments has been calculated using the bid price. The major assumptions used were as follows: 31 March 31 March 2016 2015 % % Rate of increase in salaries Rate of increase in pensions Discount rate Annual inflation RPI Annual inflation CPI n/a 3.2 2.2 2.2 3.4 3.2 3.1 3.2 2.1 2.2 31 March 31 March 2016 2015 No. of Years No. of Years Life expectancy of male aged 60 at accounting date 27.8 27.7 The market value of the assets in the Group’s sub-funds of the scheme and the present value of these sub-funds’ liabilities at the balance sheet date were: Valuation 2016 2016 2015 2015 (as restated) % £’000 % £’000 Equities 26 69,172 30 80,609 High yield bonds/gilts and debt instruments 56 146,939 53 142,937 Diversified growth funds 11 29,450 11 30,972 Emerging markets multi asset funds 6 16,278 6 15,590 (Overdraft)/cash — (346) — (43) Market value of scheme assets Present value of scheme liabilities 261,493 (223,705) 270,065 (243,213) Surplus before deferred tax Related deferred tax liability 37,788 (6,802) 26,852 (5,370) Surplus after deferred tax 30,986 21,482 Changes in the present value of the liabilities of the Group’s sub-funds of the scheme are as follows: 2016 2015 (as restated) £’000 £’000 Opening present value of scheme liabilities 243,213 211,257 Curtailment gain (3,581) — Current service cost (employer) — 1,723 Current service cost (employee) — 639 Interest cost 7,636 9,137 Actuarial loss/(gain) (14,359) 30,099 Benefits paid (9,204) (9,642) Closing present value of scheme liabilities 223,705 243,213 77