Punch Taverns plc 2011 Annual Report

Punch Taverns plc
Annual Report and Financial Statements 2011
95
29 Pensions and other post-retirement benefits continued
Scheme funding
Pubmaster Pension Scheme
The Pubmaster Pension Scheme is a defined benefit scheme operated in the UK. The values of the scheme’s liabilities have been
determined by a qualified actuary based on the results of an actuarial valuation as at 6 April 2010, updated to 20 August 2011,
the balance sheet date. The mortality assumptions at the year end are based on standard mortality tables that allow for future
mortality improvements. The assumptions are that the life expectancy of a member who retires at the age of 65 is as follows:
20 August
2011
21 August
2010
Male currently aged 50
22.9 years 22.8 years
Male currently aged 65 21.2 years 21.0 years
Female currently aged 50
25.1 years 25.3 years
Female currently aged 65
23.3 years 23.6 years
The assumptions used in determining the valuations are as follows:
20 August
2011
21 August
2010
Rate of increase of salaries 4.90% 4.30%
Rate of increase in pensions 3.00% 2.90%
Discount rate 5.40% 5.10%
Inflation assumption (RPI) 3.65% 3.05%
Inflation assumption (CPI) 2.90% –
The assets in the scheme and the expected rate of return were:
Long-term
rate of return
expected at
20 August
2011
Value at
20 August
2011
£m
Long-term
rate of return
expected at
21 August
2010
Value at
21 August
2010
£m
Equities 7.50% 25.4 7.75% 26.6
Bonds 4.50% 19.4 4.30% 16.8
Insured pensions 5.40% 1.5 5.10% 1.7
Cash 4.00% 0.2 4.00% 0.3
Total market value of assets 46.5 45.4
Present value of scheme liabilities (54.4) (54.5)
Net pension liability before deferred tax (7.9) (9.1)
Deferred tax asset 2.0 2.4
Net pension liability (5.9) (6.7)
Governance Business review
Financial statements