Reports and Financial statements 2009 - the University Offices ...

Notes to the accounts
Amounts for the current and previous four years were as follows:
2009 2008 2007 2006 2005
£m £m £m £m £m
Defined benefit obligation (458.6) (405.5) (372.5) (374.6) (331.8)
Plan assets 275.9 290.8 313.9 276.8 249.0
Deficit at the balance sheet date (182.7) (114.7) (58.6) (97.8) (82.8)
Experience (losses)/gains for the year on
plan liabilities (3.9) (1.3) (4.1) (7.2) 0.2
Experience (losses)/gains for the year on
plan assets (41.2) (51.2) 14.9 5.8 22.2
The above results have been recognised in the consolidated balance sheet.The University is,
however, unable to identify its own share of the underlying assets and liabilities in the scheme,
as distinct from that attributable to subsidiary undertakings, on a reasonable and consistent basis.
For the University itself, therefore, pension costs are accounted for as if the CPS were a defined
contribution scheme, and the University’s own balance sheet does not include a pension liability
in respect of the CPS.
Cambridge University Press UK defined benefit schemes (PCPF and PSSPS)
Triennial valuation of the schemes
Full triennial valuations of the schemes were carried out by the actuary for the trustees of the
schemes for funding purposes as at 1 January 2007.
Pension costs under FRS 17
For accounting purposes the schemes’ assets are measured at market value and liabilities are valued
using the attained age method and discounted using the gross redemption yield for corporate
AA rated bonds.The valuations use market-based assumptions and asset valuations, and represent
current valuations.They do not impact on the joint contribution rates set by the trustees of
the schemes.The actuary has updated the 2007 valuations to 31 July 2008 and 31 July 2009 for the
purposes of the University’s financial statements.The principal assumptions used by the actuary for
both schemes were:
2009 2008
Discount rate 6.00% 6.40%
Expected rate of return on scheme assets at beginning of year 6.25% 6.25%
Rate of increase in salaries – schemes are now on frozen current salary basis 0.00% 0.00%
Rate of increase in pensions in deferment 3.70% 3.80%
Rate of increase in pensions in payment 3.70% 3.80%
Age at retirement:
SSPS – males– active 59 59
All others 60 60
Mortality – equivalent life expectancy for members reaching retirement age:
Males 84 84
Females 87 87
98 University of Cambridge Annual Report 2009