Annual Report & Accounts - Countrywide Farmers

Notes to the Financial Statements (Continued)
For the year ended 31 May 2008
At 31 May
2008
At 31 May
2007
At 31 May
2006
Rate of increase of pensions in payment 3.45% 2.75% 2.75%
Rate of increase in deferred pensions 3.45% 2.75% 2.75%
Discount rate 6.50% 5.70% 5.00%
Inflation assumption 3.70% 3.00% 3.00%
Under the mortality tables adopted, the assumed life expectancy at age 65 is as follows:
Life expectancy aged 65 31 May 2008 31 May 2007 31 May 2007
Male currently aged 45 23.1 23.0 20.1
Female currently aged 45 25.9 25.8 23.1
Male currently aged 65 22.0 21.9 20.1
Female currently aged 65 24.8 24.8 23.1
The assets in the scheme and the expected rate of return were
Expected rate
of return
Value at 31 May Expected rate of Value at 31 Expected rate Value at 31
2008 return May 2007 of return May 2006
£000s £000s £000s
Equities/property 7.00% 51,980 7.00% 54,832 7.00% 45,921
Government bonds/cash 5.00% 5,417 5.00% 7,124 4.30% 8,180
Corporate bonds 6.50% 4,110 5.50% 4,088 5.00% 4,068
Total market value of assets 61,507 66,044 58,169
Actuarial value of liability (69,162) (72,437) (75,477)
Deficit in the scheme (7,655) (6,393) (17,308)
Related deferred tax asset 2,144 1,918 5,192
Net pension liability (5,511) (4,475) (12,116)
Analysis of the amount (credited)/charged to operating profit in respect of defined benefit scheme:
At 31 May At 31 May
2008 2007
£000s £000s
Past service credit - (1,871)
Analysis of the amount (credited) to other finance income:
At 31 May At 31 May
2008 2007
£000s £000s
Expected return on pension scheme assets (4,345) (3,761)
Interest on pension liabilities 4,043 3,748
Net (return) (302) (13)
Analysis of amount recognised in statement of total recognised gains and losses (STRGL):
At 31 May At 31 May
2008 2007
£000s £000s
Actual return less expected return on assets (6,868) 5,925
Experience gains and losses arising on pension scheme liabilities - (1,904)
Changes in assumptions 4,292 4,066
Net (loss)/gain recognised (2,576) 8,087
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