2018-Report-AW-3 copy

16. Pensions
Help the Aged Final Salary Scheme continued
17. Related party transactions
There are no related party’s transactions during the year.
Assumptions
At
At
31 March 31 March
Principal actuarial assumptions at the balance sheet date
2018 2017
% pa % pa
Financial assumptions
Discount rate 2.60 2.50
Rate of increase in salaries 3.30 3.30
Rate of increase in payment of pre-2005 pensions (in excess of GMP) 2.30 2.30
Rate of increase in payment of post-2005 pensions (in excess of GMP) 2.30 2.30
Rate of revaluation of deferred pensions in excess of GMP 0.00 0.00
Inflation assumption (RPI) 3.30 3.30
Inflation assumption (CPI) 2.30 2.30
18. Operating lease commitments
Total future lease commitments under operating leases are as follows for each of the following periods:
Property / office lease
Equipment / vehicle
2017/18 2016/17 2017/18 2016/17
International offices £000 £000 £000 £000
Less than one year 144 186 1 5
One to five years 44 105 0 0
Over five years 0 0 0 0
188 291 1 5
Demographic assumptions 2018 2017
Mortality S1 Normal base tables S1 Normal base tables
projected by year of birth
projected by year of birth
assuming future improvements assuming future improvements
in line with CMI 2017 core in line with CMI 2016 core
projections with a long-term projections with a long-term
rate of improvement of 1% pa rate of improvement of 1% pa
Cash commutation allowance 80% of the maximum 80% of maximum
cash allowance available
cash allowance available
upon retirement
upon retirement
Other assumptions are the same as those used in the preliminary results of the Trustees’ Scheme Funding
valuation as at 1 April 2013.
Property / office lease
2017/18 2016/17
London office £000 £000
Less than one year 52 52
One to five years 196 248
Over five years 0 0
248 300
This figure relates to the UK office which is leased from Age UK at a commercial rent of £52,288 per annum.
The lease expires on 15 December 2022 and can be terminated at six months’ notice.
2018. 2017. 2016. 2015. 2014.
History of experience gains and losses £000. £000. £000. £000. £000.
Ethiopia country team outside their office in
Addis Ababa. Anteneh Teshome/HelpAge International
Defined benefit obligation (6,356) (6,485) (5,452) (5,634) (5,104)
Scheme assets 5,396. 5,293. 4,692. 4,668. 4,178.
Surplus / (deficit) (960) (1,192) (760) (966) (926)
Experience adjustments on Scheme liabilities 0. 0. 0. 94. (100)
Experience adjustments on Scheme assets 47. 658. (69) 345. 454.
Note: This refers to the expected rate of return on assets as at the beginning of each period presented.
50 Financial statements for the year ended 31 March 2018 51