WWU Regulatory Accounts to 31st March 2006 - Our Home Page

NOTES TO THE REGULATORY ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2006
26 Pension schemes Defined benefit scheme (continued)
In December 2005 the past service benefits of 77 defined contribution members and 959 defined benefit members were transferred into the Wales & West Scheme from the Lattice Group
Pension Scheme. These members are now contributing to the Wales & West Scheme.
The balance sheet figures relate only to the defined benefit section of the Scheme and therefore exclude the assets and liabilities of the defined contribution section. This does not affect the
reported deficit.
The liabilities of the Scheme were calculated as at 1 May 2005 and 31 March 2006 based on calculations and data as at 31 May 2005 and 31 March 2006. These calculations were carried out
by an independent qualified actuary in accordance with FRS17. The value of the defined benefit liabilities has been measured using the projected unit method.
The key FRS17 assumptions used for the Scheme are set out below, along with the fair value of assets, a breakdown of the assets into the main asset classes, the present value of the FRS17
liabilities and the deficit of assets below the FRS17 liabilities (which equals the gross pension liability).
Assumptions 31 March 2006 1 May 2005
Price inflation 2.9% pa 2.8% pa
Discount rate 5.0% pa 5.4% pa
Pension increases
(LPI) 2.9% pa 2.8% pa
Salary growth 3.9% pa 3.8% pa
Wales & West Utilities Ltd (Formerly Blackwater 2 Ltd)
48