Marks and Spencer 2007 Annual Report Download - page 70

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1111 RREETTIIRREEMMEENNTT BBEENNEEFFIITTSS continued
CCDDeemmooggrraapphhiicc aassssuummppttiioonnss
The demographic assumptions are in line with those adopted for the last formal actuarial valuation of the Scheme. One of the
most significant demographic assumptions underlying the valuation is mortality. The post-retirement mortality assumptions are based
on an analysis of the pensioner mortality trends under the Scheme for the period to March 2006 updated to allow for anticipated
longevity improvements over the subsequent year. The specific mortality rates used are based on the PMA92 and PFA92 tables,
adjusted to allow for the experience of scheme pensioners. The life expectancies underlying the valuation are as follows:
2
20000772006
YYeeaarrssYears
Current pensioners (at age 65) – males 2
211..0018.8
Current pensioners (at age 65) – females 2
233..5522.6
Future pensioners (at age 65) – males 2
211..9919.8
Future pensioners (at age 65) – females 2
244..3323.6
D
DAAnnaallyyssiiss ooff aasssseettss aanndd eexxppeecctteedd rraatteess ooff rreettuurrnn
The major categories of assets as a percentage of total plan assets are:
2
20000772006
%%%
Property partnership interest 9
9–
UK equities 1
16617
Overseas equities 2
27730
Government bonds 7716
Corporate bonds (Triple B or above) 441127
Cash and other –
–10
110000100
The expected long-term rates of return are:
2
20000772006
%%%
Property partnership interest 5
5..55–
UK equities 8
8..448.0
Overseas equities 8
8..448.0
Government bonds 44..774.3
Corporate bonds (Triple B or above) 55..334.9
Cash and other –
–4.5
OOvveerraallll eexxppeecctteedd rreettuurrnn66..666.2
The overall expected return on assets assumption is derived as the weighted average of the expected returns from each of the main
asset classes. The expected return for each asset class reflects a combination of historical performance analysis, the forward looking
views of financial markets (as suggested by the yields available) and the views of investment organisations. Consideration is also
given to the rate of return expected to be available for reinvestment.
At year end, the UK scheme indirectly held 463,964 (last year 394,672) ordinary shares in the Company through its investment in an
Aquila Life UK Equity Index Fund.
Notes to the financial statements continued
6
688MARKS AND SPENCER GROUP PLC wwwwww..mmaarrkkssaannddssppeenncceerr..ccoomm//aannnnuuaallrreeppoorrtt22000077