Punch Taverns plc 2007 Annual Report and Financial Statements

Notes to the financial statements continued
for the 52 weeks ended 18 August 2007
31 Pensions and other post-retirement benefits continued
The assumptions used in determining the valuations are as follows:
18 August
2007
19 August
2006
Rate of increase of salaries 3.25% 3.00%
Rate of increase in pensions 1.50% 1.40%
Discount rate 5.80% 5.05%
Inflation assumption 3.25% 3.00%
The assets in the scheme and the expected rate of return were:
Long term
rate of return
expected at
18 August
2007
Value at
18 August
2007
£m
Long term
rate of return
expected at
19 August
2006
Value at
19 August
2006
£m
Equities 8.00% 137.1 7.50% 136.1
Government bonds 5.00% 51.2 4.50% 42.0
Corporate bonds 5.50% 24.8 5.00% 20.7
Property 7.00% 26.4 6.50% 23.7
Other 5.50% 0.2 4.50% 11.7
Total market value of assets 239.7 234.2
Present value of scheme liabilities (231.6) (242.3)
Net pension asset / (liability) before deferred tax 8.1 (8.1)
Deferred tax (liability) / asset (2.3) 2.4
Net pension asset / (liability) 5.8 (5.7)
On the acquisition of the Spirit group in the prior period, the Group undertook to make the following schedule of contributions
to reduce the pension scheme deficits on acquisition, as described below, over the three years to 2010. At the period end date,
the August 2007 payment had not been made. This was paid subsequent to the period end, on 28 August 2007.
SGPS
payments
£m
SGRPP
payments
£m
August 2007 6.4 6.1
August 2008 3.4 6.1
August 2009 3.4 6.1
August 2010 4.4 6.1
Total 17.6 24.4
The pension costs for the defined contribution schemes are as follows:
52 weeks to
18 August
2007
£m
52 weeks to
19 August
2006
£m
Defined contribution schemes 4.4 6.0
294
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