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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
36
RETIREMENT BENEFIT SCHEMES CONTINUED
The analysis of the scheme assets and the expected rate of return at the statement of financial position date was as follows:
Expected return
Fair value of assets
29 December 31 December 29 December 31 December
2012 2011 2012 2011
% % £m £m
UK equities 7.15 6.90 61.8 56.2
Overseas equities 7.15 6.90 24.0 57.5
Corporate bonds 3.60 4.20 37.3 35.9
High yield bonds 4.75 – 42.2 –
UK government bonds 2.30 2.50 12.4 12.0
Property 5.30 5.60 7.2 8.7
Cash – – 0.9 0.3
185.8 170.6
29 December 31 December 1 January 2 January 27 December
£m 2012 2011 2011 2010 2008
Fair value of scheme assets 185.8 170.6 179.7 156.4 127.9
Present value of defined benefit obligations (175.8) (161.3) (167.9) (169.6) (127.5)
Surplus/(deficit) in the scheme 10.0 9.3 11.8 (13.2) 0.4
Experience (losses)/gains adjustments on scheme liabilities:
Amount – (0.9) (5.6) 3.5 4.9
Percentage of scheme liabilities (%) – (0.56) (3.34) 2.06 3.84
Experience gains/(losses) on scheme assets:
Amount 8.7 (16.5) 12.8 21.6 (51.3)
Percentage of scheme assets (%) 4.68 (9.67) 7.12 13.81 (40.11)
The actual amount of contributions expected to be paid to the pension scheme during 2013 is £4.2 million. Employer contributions, except for deficit
reduction contributions, ceased in March 2011 when the scheme closed to future accrual.
The next triennial valuation is scheduled to be carried out as at 31 March 2013.
The deficit reduction contributions have been agreed between the Group and the trustees. These are paid over a five year recovery period ending on
31 March 2016. The recovery contributions are paid monthly and the agreed rates were £2 million in the first year, £3 million in the second year and
£4.5 million in the following three years.
The Group estimate the scheme liabilities on average fall due over 20 years.
The Trustees currently adopt a policy of 70% return seeking assets (equities) and 30% liability matching assets (bonds/property) which will be
reviewed periodically. A review of the investment strategy is currently underway following the closure of the scheme to future accrual.
The Group and the Trustees work closely together in matters concerning the Bakkavor Pension Scheme. Regular meetings and correspondence
on matters concerning the scheme are shared in an open manner between both parties.
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