Annual Report and Accounts 2012 - Scapa

Notes on the Accounts continued
12. Pension schemes continued
The financial assumptions used to calculate scheme liabilities under FRS 17 for the UK defined benefit schemes are as follows:
84 Scapa Group plc Annual Report and Accounts 2012
2012 2011 2010
Discount rate 4.75% 5.6% 5.7%
Price inflation per annum (RPI) 3.0% 3.4% 3.4%
Price inflation per annum (CPI) 2.2% 2.4% –
Increases to pensions in payment 2.6%-3.4% 2.8%-3.6% 2.8%-3.6%
Increases to deferred pensions 2.2% 2.4% 3.4%
The market value of assets in the schemes at the Balance Sheet date, and the expected rates of return and the present value of the
scheme liabilities at each balance sheet date are as follows:
Expected
rate of return
At 31 March 2012 At 31 March 2011 At 31 March 2010
Market value
£m
Expected
rate of return
Market value
£m
Expected
rate of return
Market value
£m
Equities 7.85% 31.5 7.85% 27.7 7.85% 17.4
Bonds 4.7% 26.3 4.1%-5.6% 26.9 4.4%-5.7% 35.9
Other 3.1% 0.2 4.0% 0.4 4.0% 0.6
Total market value of assets 58.0 55.0 53.9
Present value of scheme liabilities (73.2) (69.6) (70.5)
Net deficit in the schemes (15.2) (14.6) (16.6)
Deferred tax asset 3.6 3.8 4.6
Net pension deficit (11.6) (10.8) (12.0)
The following amounts have been recognised in the profit and loss account and Statement of Total Recognised Gains and Losses
for the year ended 31 March 2012 in respect of the Company’s defined benefit schemes:
Profit and loss account
Past service cost (included within staff costs)
Other finance costs
0.6 –
– expected return on pension scheme assets 3.5 3.3
– interest on pension scheme liabilities (3.7) (3.9)
Net finance cost (0.2) (0.6)
Total expenses charged through the Income Statement 0.4 (0.6)
Analysis of movements in scheme assets
Beginning of the year 55.0 53.9
Expected return on scheme assets 3.5 3.3
Actuarial gains/(losses) 0.1 (0.2)
Contributions 3.8 2.6
Benefits paid (4.4) (4.6)
End of year 58.0 55.0
Analysis of movements in scheme liabilities
Beginning of the year (69.6) (70.5)
Interest on scheme liabilities (3.7) (3.9)
Benefits paid 4.4 4.6
Past service cost (included within staff costs) 0.6 –
Actuarial (losses)/gains (4.9) 0.2
End of year (73.2) (69.6)
2012
£m
2012
£m
2011
£m
2011
£m