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Notes to the financial statements25. Pension scheme (continued)The assets in the scheme (excluding the Defined Contribution Section of the Scheme and the members’AVC funds) and the expected rates of return at 31 March 2011 were:Asset distribution and expected return2011 2010Expected return Fair value Expected return Fair value% pa £m % pa £mEquities 8.35 112.5 8.55 149.6Bonds 4.35 84.5 4.55 67.6Property 6.35 13.8 6.55 12.6Diversified Growth Fund 7.35 47.4 - -Cash 0.50 1.5 0.50 1.4Total market value ofassets 259.7 231.2The expected long term rate of return on net assets have been derived so as to be consistent with marketyields at the accounting date and previous years accounting disclosures.Equities – As at 31 March 2011 it is assumed that equities will return 4.0% above the return on longduration Government bonds.Property – As at 31 March 2011 it is assumed that property will achieve a return of 2.0% below the returnon equities.Government Bonds – As at 31 March 2011 it is assumed that Government bonds will achieve a return inline with the annualised gross redemption yield on UK Gilts all stocks 20 year index.Diversified Growth Fund – As at 31 March 2011 it is assumed that the diversified growth fund will achievea return of 1.0% below the return on equities.Cash – As at 31 March 2011 it is assumed that Cash will achieve a return equal to the Bank of EnglandBase Rate.The following amounts at 31 March 2011 were measured in accordance with the requirements of FRS17:Balance sheet2011 2010£m £mTotal fair value of assets 259.7 231.2FRS17 value of liabilities (285.3) (295.3)Deficit in the scheme (25.6) (64.1)The scheme is represented on the balance sheet at 31 March 2011 as a liability under FRS17 whichamounts to £25.6m (2010: £64.1m).Over the year to 31 March 2011, contributions by the Group of £15.8m (2010: £14.3m) were made in respectof members of the defined benefit section. In addition, £0.6m (2010: £0.6m) has been set aside by the Groupoutside of the Scheme during the year in order to meet the Scheme’s expenses. At 31 March 2011 £0.6m(2010: £0.4m) was accrued in respect of contributions due to the defined benefit section.It has been agreed that future ongoing employer contributions will be at a rate of 36.7% (2010: 36.7%) ofpensionable salary plus an allowance for expenses. In addition, the Group has agreed to pay deficit recoverycontributions of £5.2m pa until 31 March 2017 plus £1.7m pa for the period from 1 April 2010 to 31 March2013.Wales & West Utilities Limited40Registered number: 05046791