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FINANCIAL STATEMENTS Aer Lingus Group Plc
ANNUAL REPORT 2012
104
Sensitivities
The sensitivity of the overall pension liability to changes in the weighted principal assumptions is set out below:
Change in assumption Impact on overall liability
Discount rate North American Pension Scheme Increase/decrease by 0.50% Decrease by 5.5%/increase by 6.4%
Discount rate Other Increase/decrease by 0.25% Decrease/increase by 3.2%
Inflation Other Increase/decrease by 0.25% Increase/decrease by 5.4%
Plan assets are comprised as follows:
2012 2011
Equity instruments 4,900 50% 4,482 48%
Debt instruments 4,641 48% 4,199 45%
Property -0% 13 0%
Other 229 2% 711 7%
Total 9,770 100% 9,405 100%
Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The
largest proportion of assets is invested in equities, although the schemes also invest in bonds, hedge funds and cash.
The expected return on plan assets is determined by considering the expected returns available on the assets underlying the current investment
policy. Expected yields on fixed interest investments are based on gross redemption yields as at the end of the reporting period. Expected returns
on equity and property investments reflect long-term real rates of return experienced in the respective markets.
Expected contributions to post-employment benefit plans for the year ending 31 December 2013 are €0.6 million.
The Group has agreed that it will aim to eliminate the deficit over the next 7 years. The next valuation is due to be completed as at 31 December
2013. The Group considers that the contribution rate set at the last valuation date is sufficient to eliminate the deficit over the agreed period and
that regular contributions, which are based on service costs, will not increase significantly.
History of defined benefit obligations, assets and experience gains and losses:
Financial year ending in
2012 2011 2010 2009 2008
€'000 €'000 €'000 €'000 €'000
Defined benefit obligation 14,422 14,481 12,476 N/A N/A
Fair value of plan assets 9,770 9,405 9,080 N/A N/A
Deficit/(surplus) 4,652 5,076 3,396 N/A N/A
Difference between expected and actual return on plan assets:
Amount 344 186 (38) N/A N/A
Percentage of plan assets 3.52% 2.00% (0.42%) N/A N/A
Experience gains and (losses) on plan liabilities:
Amount (31) 2,185 (2,551) N/A N/A
Percentage of plan liabilities (0.22%) 15.10% (20.45%) N/A N/A
Notes to the consolidated financial statements (continued)