Page 96 - Paragon Annual Report 2

92 | Group financial statements
Notes to the consolidated financial statements (continued) 24 Retirement benefits (continued)
Defined benefits scheme – UK
A subsidiary company operates a final salary defined benefit pension plan. No benefits have accrued since 3 August 2005. Pension benefits for deferred members are based on the members’ final pensionable salaries and service at the date accrual ceased (or date of leaving if earlier).
The most recent formal actuarial valuation was carried out as at 30 June 2017.
The principal assumptions used for the purpose of the actuarial valuations were as follows:
Discount rate
Expected rate of inflation
Rate of increase of pensions in payment Rate of increase for deferred pensioners
Demographic assumptions
Mortality (pre-retirement) Mortality (post retirement)
Life expectancy for a current 65 year old
Life expectancy at age 65 for current 45 year old
22.2 years 23.9 years
2.7% 2.8% 2.7% 1.8%
AMC00/AFC00
S1PA (yob) CMI 2015 M/F 1.25%
24.2 years 26.1 years
The amount recognised in the Consolidated Statement of Financial Position in respect of the Group’s UK defined benefits scheme assets is as follows:
Present value of funded obligations Fair value of scheme assets Assets
(8,592) 9,553 961
The surplus has been recognised as the scheme rules of the plan state that the Company will be entitled to any surplus remaining if the plan is run on until the last member exits the plan.
Amounts recognised in the Consolidated Income Statement in respect of the defined benefit scheme are as follows:
Interest charge on obligation (note 6)
Expected return on scheme assets (note 6) 303
28
Paragon Group Limited – 05258175
23.5 years
25.4 years
Per annum
AMC00/AFC00
S1PA (yob) CMI 2015 M/F 1.25%
2017
2.6%
3.3%
3.2%
2.3%
Per annum
2016
2017
2016
22.1 years
2017
Females
23.9 years
Males
2016
Males
Females
2017
€000
(8,858)
9,406
2016
€000
548
2017
2016
€000
(220)
244
€000
(275)
24