Annual Report 2012 - Cadogan

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2012
23 Pension arrangements (continued)
Under the mortality tables adopted, the assumed future life expectancy at
age 60 is as follows:
life expectancy at age 60
2012 2011
Years Years
Male currently aged 40
Female currently aged 40
Male currently aged 60
Female currently aged 60
30.3 30.2
32.8 32.7
28.7 28.6
31.2 31.1
Assets
The major categories of assets as a proportion of total assets are as follows:
Asset category
2012 2011
% %
Equities
Bonds
Other
total
53 60
36 36
11 4
100 100
The actual return on the Scheme’s assets net of expenses over the period
to the Review Date was a gain of £1,812,000 (2011 loss - £721,000).
The assets do not include any investment in shares or property of the group.
The expected return on assets is a weighted average of the assumed long-term
returns for the various asset classes. Equity returns are developed based on
the selection of an appropriate risk premium above the risk free rate which
is measured in accordance with the yield on government bonds. Bond returns
are selected by reference to the yields on government and corporate debt as
appropriate to the Scheme’s holdings of these instruments.
Amounts recognised in the balance sheet
2012 2011
£000 £000
Fair value of assets
Present value of funded obligations
Deficit before tax
Related deferred tax asset
net deficit
26,185 24,373
(31,782) (29,156)
(5,597) (4,783)
1,287 1,196
(4,310) (3,587)
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