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Financial Statements 2011-12 43


Notes to the Financial Statements For the year ended 31 July 2012


26 University of Essex Pension Scheme (UEPS) - continued


Actuarial Assumptions The FRS 17 disclosures as at 31 July 2012 reflect those adopted by the Scheme Trustees for the formal actuarial


At


Financial Assumptions Rate of increase in salaries


Rate of increase in pension payments Expected return on assets Discount rate for liabilities Inflation assumptions


Split of assets between investment categories Equities


Corporate bonds Government bonds Cash


Expected rate of return on assets in the scheme rate of return Equities


Corporate bonds Government bonds Cash


Total market value of assets


Present value of scheme liabilities (Deficit) in the scheme


Long-term Whole fund value at


expected at 31 July 2012 31 July 2012


1,531 1,890


rate of return


Long-term Whole fund Long-term Whole fund value at rate of return


£’000 31 July 2011


% %% 5.9 12,122 3.9 2.8


7.0 12,088 4.0 1,583 4.9 1,235


0.5 587 16,130


(21,914) (5,784)


74%


(16,499) (1,331)


92% The expected rate of return on assets is based upon the long term expectation for each asset class at the beginning of the period.


Mortality and life expectancy assumptions FRS17 disclosures up to July 2006 used the standard PXA92 series tables as used in the formal actuarial valuation in 2004. The trustees agreed that the formal funding valuation as at 31 July 2007 should be based on the standard mortality table PXA92 based on each member’s actual year of birth and allowing for future improvements in mortality in line with the medium cohort projections. The University agreed to adopt these tables to calculate the liabilities for the FRS 17 disclosure as at 31 July 2010


At


Life expectancy assumptions Non-pensioners


Pensioners


31 July 2012 SIPXA(YOB) 1% u/p


SIPXA(YOB) 1% u/p


At


31 July 2012 £’000


Analysis of amount charged to income and expenditure account Current service charge Past service cost


Total operating charge


Analysis of net return on pension scheme Expected return on pension scheme assets Interest on pension liabilities Net return


(735) 0


(735) 991 (881) At


31 July 2011 SIPXA(YOB) 1% u/p


SIPXA(YOB) 1% u/p


At


31 July 2011 £’000


(885) 0


(885) 879 (855) 110 24


0.5 262 0.5 15,168


7.3 5.4 4.3


expected at 31 July 2011 expected at 31 July 2010 £’000 31 July 2010


1,286 1,044 532


12,476


(15,489) (3,013)


81%


value at £’000 9,614


3.60 2.60 5.15 3.90 1.80


75.15 11.72 9.49 3.64


31 July 2012 31 July 2011 %


At %


4.20 3.20 6.43 5.30 3.20


80.02 10.48 8.18 1.32


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