Page 73 - RFU Annual Report 2017
P. 73
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Financial Statements
27. Defined benefit pension scheme continued
2017 2016
(e) Defined benefit costs recognised in the profit and loss account £m £m
Current service cost 0.7 0.6
Net interest cost 0.1 0.1
Defined benefit costs recognised in profit and loss account 0.8 0.7
2017 2016
(f) Defined benefit costs recognised in other comprehensive income £m £m
Return on plan assets (excluding amounts included in net interest cost) - gain 1.0 1.2
Experience gains and losses arising on the plan liabilities - gain 0.1 0.3
Effects of changes in the demographic and financial assumptions underlying
the present value of the plan liabilities - gain/(loss) on total 1.3 (3.1)
Total amount recognised in other comprehensive income/(expense) 2.4 (1.6)
2017 2016
(g) Assets £m £m
UK Equities 2.7 3.2
Overseas Equities 8.1 6.7
Corporate Bonds 2.6 1.8
Government Bonds 5.3 4.3
Insured Assets 16.7 17.8
Property 1.6 1.7
Cash 1.8 1.8
Other 1.2 1.6
Total assets 40.0 38.9
None of the fair values of the assets shown above include any direct investments in the employer’s own
financial instruments or any property occupied by, or other assets used by, the employer.
2017 2016
(h) Assumptions % per % per
annum annum
Discount Rate 2.70 3.15
Inflation (RPI) 3.30 3.10
Inflation (CPI) 2.30 2.10
Salary Growth 2.80 4.10
Allowance for revaluation of deferred pensions of RPI or 5% p.a. if less 3.30 3.10
Allowance for pension in payment increases of RPI or 5% p.a. if less 3.10 3.10
Allowance for pension in payment increases of CPI or 3% p.a. if less 2.00 2.10
Allowance for commutation of pension for cash at retirement 65% of 25% of
Post A Day Post A Day
(i) The mortality assumptions adopted at 30 June 2017 imply the Life expectancy at
following life expectancies: age 60 (years)
Male retiring in 2017 26.7
Female retiring in 2017 28.6
Male retiring in 2037 28.3
Female retiring in 2037 30.3
The best estimate of contributions to be paid by the employer to the scheme for the period commencing 1 July 2017
is £0.5m (2016: £0.6m).
Annual Report 2017
