Carphone Warehouse 2016 Annual Report Download - page 128

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Notes to the Group financial statements
126
21 Retirement and other post-employment benefit obligations continued
c) UK Defined benefit pension scheme – IAS 19
The following summarises the components of net defined benefit expense recognised in the consolidated income statement,
the funded status and amounts recognised in the consolidated balance sheet and other amounts recognised in the statement
of comprehensive income. The methodologies set out in IAS 19 are different from those used by the scheme actuaries in
determining funding arrangements.
(i) Principal assumptions adopted
The assumptions used in calculating the expenses and obligations are set by the directors after consultation with the
independent actuaries.
30 April
2016
£million
2 Ma
y
2015
£million
Rates per annum
Discount rate 3.5% 3.5%
Rate of increase in pensions in payment /
deferred pensions (pre / post April 2006 accrual)
2.9% /
2.1%
2.9% /
1.9%
Inflation 2.95% 3.1%
The Group uses demographic assumptions underlying the last formal actuarial valuation of the scheme as at 31 March 2013.
In particular, post retirement mortality has been assumed to follow the standard mortality tables ‘S1’ All Pensioners tables
published by the CMI, based on the experience of Self-Administered Pension Schemes (SAPS) with multipliers of 105% for
males and 110% for females. In addition, an allowance has been made for future improvements in longevity from 2003 by using
the new CMI 2013 Core projections with a long term rate of improvement of 1.5% per annum for men and 1.25% per annum for
women. Applying such tables results in an average expected longevity of between 87.2 years and 88.9 years for men and
between 88.9 years and 90.3 years for women for those reaching 65 over the next 15 years.
(ii) Amounts recognised in consolidated income statement
Year ended
30 April
2016
£million
13 months
ended
2 May
2015
£million
Net interest expense on defined benefit obligation 16 13
(iii) Amounts recognised in the consolidated statement of comprehensive income:
Year ended
30 April
2016
£million
13 months
ended
2 May
2015
£million
Remeasurement of defined benefit obligation – actuarial gains / (losses) arising from:
Changes in financial assumptions 25 (168)
Experience adjustments 27 19
Change in demographic assumptions — (9)
Remeasurement of scheme assets:
Actual return on plan assets (excluding amounts included in net interest expense) (57) 86
Cumulative actuarial loss (5) (72)
00_DC 2016 Annual Report.pdf 126 11/07/2016 18:34