Punch Taverns plc 2011 Annual Report
Punch Taverns plc 2011 Annual Report
Punch Taverns plc 2011 Annual Report
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96<br />
<strong>Punch</strong> <strong>Taverns</strong> <strong>plc</strong><br />
<strong>Annual</strong> <strong>Report</strong> and Financial Statements <strong>2011</strong><br />
Notes to the financial statements continued<br />
for the 52 weeks ended 21 August <strong>2011</strong><br />
29 Pensions and other post-retirement benefits continued<br />
<strong>Punch</strong> Pub Company Pension Scheme<br />
The PPCPS has been derecognised on the demerger of the Spirit business.<br />
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 45<br />
– 22.3 years<br />
Male currently aged 65<br />
– 20.5 years<br />
Female currently aged 45 – 23.7 years<br />
Female currently aged 65<br />
– 22.6 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 – –<br />
Rate of increase in pensions – 3.20%<br />
Discount rate – 5.20%<br />
Inflation assumption – 3.40%<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 – – 7.75% 57.0<br />
Government bonds – – 4.00% 19.2<br />
Property – – 7.00% 11.3<br />
Corporate bonds – – 5.00% 20.0<br />
Other – – 1.50% 0.5<br />
Total market value of assets – 108.0<br />
Present value of scheme liabilities – (120.5)<br />
Net pension liability before deferred tax – (12.5)<br />
Deferred tax asset – 3.4<br />
Net pension liability – (9.1)<br />
<strong>Punch</strong> Pub Company Retail Pension Plan<br />
The PPCRPP has been derecognised on the demerger of the Spirit business.<br />
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 45<br />
– 22.3 years<br />
Male currently aged 65<br />
– 20.5 years<br />
Female currently aged 45 – 23.7 years<br />
Female currently aged 65<br />
– 22.6 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 – –<br />
Rate of increase in pensions – 1.80%<br />
Discount rate – 5.20%<br />
Inflation assumption – 3.40%