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