FINANCIAL REPORT AND ACCOUNTS 2011 - States Assembly

NOTES TO THE ACCOUNTSNOTE 22: PENSION SCHEMES – DEFINED BENEFIT SCHEMESThe Discretionary Pension Scheme (DPS)The Discretionary Pension Scheme (DPS) is a funded scheme of the defined benefit type, providingretirement benefits for one individual based on final salary.The most recent full actuarial valuation of the liabilities of the DPS was at 31 December 2009. The States ofJersey will continue to meet any shortfall in benefits paid from departmental expenditure limits.The principal demographic assumptions made by the actuary to calculate the liabilities under FRS 17 were:Post retirement mortality assumptions31 December201031 December2011MalesFuture lifetime from aged 65 (currently aged 65) 22 years 22 yearsFemalesFuture lifetime from aged 65 (currently aged 65) 24 years 25 yearsCommutation Nil NilThe assets of the scheme and the weighted average expected rate of return on assets were:Long-termrate of returnexpected at31 December2010Value at 31December2010Long-termrate of returnexpected at31 December2011Value at 31December2011% p.a. £’000 % p.a. £’000Equities 8.00 149 8.00 –Property 7.50 69 7.50 –Fixed Interest Gilts 4.20 42 2.80 –Index-Linked Gilts 4.00 – 2.60 –Corporate Bonds 5.00 80 3.90 –Other 1.40 20 8.00 –Secured pension 5.30 – 4.60 235Total market value of assets 360 235Present value of scheme liabilities (695) (533)Deficit in the scheme (335) (298)Net pension liability on the balancesheet(335) (298)Note: Values shown are at bid value.121