Aer Lingus 2013 Annual Report Download - page 127

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125
The amounts recognised in the statement of financial position are as follows:
2013
2012
€'000
€'000
Present value of unfunded obligations, being scheme deficits and liability in the statement of
financial position
26,579
30,206
The movement in the defined benefit obligation in respect of unfunded arrangements during the year is as follows:
2013
2012
€'000
€'000
At 1 January
30,206
23,906
Current service cost
1,713
915
Interest cost
1,022
951
Remeasurements – effect of changes in demographic assumptions
(1,521)
31
Remeasurements – effect of changes in financial assumptions
(2,352)
4,912
Remeasurements – effect of experience adjustments
(2,429)
(393)
Benefits paid
(8)
(116)
Retranslation
(52)
-
At 31 December
26,579
30,206
The amounts recognised in the income statement are as follows:
2013
2012
€'000
€'000
Current service cost - recognised in staff costs
1,713
915
Interest cost - recognised in finance expense
1,022
951
Retranslation – recognised in other gains/losses
(52)
-
Total recognised in income statement
2,683
1,866
Key Assumptions
The principal actuarial assumptions relating to unfunded schemes are as follows:
2013
2012
Discount rate
3.95-4.30%
3.50%-3.90%
Inflation rate
2.00%
2.00%
Future long term medical cost inflation
5.00%
5.00%
Future salary increases
3.00%
3.00%
Future pension increases
0.50%
0.50%
It is assumed that all those reaching 60 will reach 65, at which point benefits under the income streaming arrangement cease.
Sensitivities
The sensitivity of the post employment benefit liabilities to changes in the weighted principal assumptions is:
Change in assumption
Impact on overall liability
Short term medical costs
North American Medical
Scheme
Increase/decrease by 1.00%
Increase by 9.77%/decrease by
8.98%
Discount rate
North American Medical
Scheme
Increase/decrease by 0.25%
Decrease/Increase by 2.5%
Discount rate
Income streaming
Increase/decrease by 0.25%
Decrease/increase by 5.17%
Inflation rate
Income streaming
Increase/decrease by 0.25%
Increase/decrease by 0.70%
Due to the unfunded nature of these arrangements, no contributions are expected during the year ending 31 December 2014.