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