Report - Fire Brigades Union

Notes to the Accounts
For the year ended 31 December 2010
SECTION K — ACCOUNTS 2010 AND FINANCIAL STATEMENT
8 Pension Scheme Contributions (continued)
The major assumptions used by the actuary for the Clerical Staff Scheme.
At At At
31.12.10 31.12.09 31.12.08
Rate of increase in salaries 4.9% 5.2% 4.2%
Rate of increase of pensions in payment 3.0% 3.3% 2.7%
Discount Rate 5.4% 5.7% 6.7%
Inflation Rate 3.4% 3.7% 2.7%
The mortality assumptions are in accordance with the published PFA92 medium cohort year of birth tables.
The assets in the scheme and the expected rate of return for the Clerical Staff Scheme.
Long-term Long-term Long-term
expected Value at expected Value at expected Value at
rate of 31.12.10 rate of 31.12.09 rate of 31.12.08
return £’000 return £’000 return £’000
Cash accumulation policy 6.2% 2,904 6.6% 2,294 6.6% 2,007
Secured annuities 5.4% 1,487 5.7% 1,433 6.7% 1,183
Total market value of assets 4,391 3,727 3,190
The union is only subject to corporation tax in line with note 9 and does not therefore account for deferred tax. As a consequence,
there cannot be a deferred tax asset related to the above pension liability.
FBU Annual Report 2011 175