Punch Taverns plc 2011 Annual Report

96
Punch Taverns plc
Annual Report and Financial Statements 2011
Notes to the financial statements continued
for the 52 weeks ended 21 August 2011
29 Pensions and other post-retirement benefits continued
Punch Pub Company Pension Scheme
The PPCPS has been derecognised on the demerger of the Spirit business.
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 45
– 22.3 years
Male currently aged 65
– 20.5 years
Female currently aged 45 – 23.7 years
Female currently aged 65
– 22.6 years
The assumptions used in determining the valuations are as follows:
20 August
2011
21 August
2010
Rate of increase of salaries – –
Rate of increase in pensions – 3.20%
Discount rate – 5.20%
Inflation assumption – 3.40%
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 – – 7.75% 57.0
Government bonds – – 4.00% 19.2
Property – – 7.00% 11.3
Corporate bonds – – 5.00% 20.0
Other – – 1.50% 0.5
Total market value of assets – 108.0
Present value of scheme liabilities – (120.5)
Net pension liability before deferred tax – (12.5)
Deferred tax asset – 3.4
Net pension liability – (9.1)
Punch Pub Company Retail Pension Plan
The PPCRPP has been derecognised on the demerger of the Spirit business.
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 45
– 22.3 years
Male currently aged 65
– 20.5 years
Female currently aged 45 – 23.7 years
Female currently aged 65
– 22.6 years
The assumptions used in determining the valuations are as follows:
20 August
2011
21 August
2010
Rate of increase of salaries – –
Rate of increase in pensions – 1.80%
Discount rate – 5.20%
Inflation assumption – 3.40%