60 Finsbury Food Group Annual Report & Accounts 2017


13. Pension Schemes (continued)


2017 £000


Movements in present value of defined benefit obligation At beginning of financial year Interest on plan obligations Benefits paid


Remeasurement – experience gain on liabilities


Remeasurement – loss from changes to financial assumptions Remeasurement – gain from changes to demographic assumptions At end of financial year


Movements in fair value of plan assets At beginning of financial year Interest on plan assets


Return on plan assets less interest Benefits paid


Contributions by employer At end of financial year


2016 £000


(25,750) (811) 821 -


(4,743) -


(30,483)


19,287 607 712


(821) 200


19,985


(24,424) (938) 756 236


(1,786) 406


(25,750)


20,587 790


(1,451) (756) 117


19,287


Remeasurement gains and losses arise due to changes in the key assumptions such as inflation, mortality rates, demographic rates and discount rates as well as experience gains and losses.


Expense Recognised in the Consolidated Statement of Profit and Loss Interest on plan assets/finance income Interest on plan obligations/finance expense Total (expense)/income


607


(811) (204)


Remeasurement Gains and Losses Recognised directly in Equity in the Statement of Comprehensive Income and Expense since 1 July 2006, the transition date to Adopted IFRS


Cumulative amount at beginning of financial year


Recognised in the financial year – return on plan assets less interest Recognised in the financial year – experience losses/(gains) on liabilities Recognised in the financial year – loss from changes to financial assumptions


Recognised in the financial year – gains/(losses) from changes to demographic assumptions Cumulative amount at end of financial year


Principal Long-term Actuarial Assumptions at the Year End


2017 %


CPI price inflation assumption Increases to pensions in payment Discount rate for liabilities Rate of return for plan assets


The differential between the assumed rate of inflation and the discount rate for liabilities is 0.3% (2016: 1.2%).


Salary inflation assumptions are as determined by the Board with regard to price inflation. The salary inflation from 31 May 2010 when the scheme closed to future accrual was assumed to be in line with inflation.


2.4 2.4 2.7 2.7


2016 %


2.0 2.0 3.2 3.2


(8,600) 712 -


(4,743) -


(12,631)


(6,005) (1,451) 236


(1,786) 406


(8,600) 790


(938) (148)


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