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The assumptions used to determine the expected return on assets reflects the underlying asset allocation at each period end. The plan asset mix and the expected
returns on the assets are as follows:
52 weeks ended
26 april 2009
52 weeks ended
27 april 2008
£’000 £’000
Equities 14,974 19,109
Bonds 12,249 13,391
Cash and other 217 206
27,440 32,706
Equities 7.8% 8.0%
Bonds 4.8% 4.9%
Cash and other 5.0% 5.0%
The overall expected rate of return on the Scheme’s assets has been derived by considering the expected rate of return on each major asset class of investments at the
start of the year and weighting these rates of return by the proportion of the total investments that the class represents at the start of the year.
The principal assumptions underlying the actuarial assessments of the present value of the plan liabilities are:
26 april 2009 27 april 2008
% %
Inflation rate 2.9 3.5
Future salary increases n/a n/a
Future pension increases 2.8 3.4
Discount rate 6.9 6.5
Mortality assumptions:
26 april 2009 27 april 2008
% %
Life expectancy at 65 at period end:
Future pensioners – male 87.2 87.2
Future pensioners – female 90.0 90.0
Current pensioners – male 86.4 86.4
Current pensioners – female 89.4 89.4
The movements in the present value of the plan liabilities are as follows:
52 weeks ended
26 april 2009
52 weeks ended
27 april 2008
£’000 £’000
At the start of the period (44,411) (50,451)
Current service cost (19) (69)
Interest cost (2,506) (2,317)
Actuarial gains 5,887 4,652
Employee contributions (118) (56)
Benefits paid out 2,551 4,177
Exchange gain (1,148) (347)
At the end of the period (39,764) (44,411)
Sports Direct International PLC Annual Report 2009 57