Notes 21-32

26. Post employment benefits

The Parent Society and certain subsidiaries operate and contribute to defined benefit and defined contribution schemes in addition to a number of internally funded arrangements.

The total Income Statement credit in respect to defined benefit schemes for the Group was a credit of €0.8m (2014: charge of €3.2m) of which €3.1m (2014: €2.3m) has been charged against operating profit before exceptional items and €5.1m (2014: €nil) has been credited to exceptional items and €1.2m has been charged within other finance costs (2014 : €0.9m).

Contributions to defined contribution pension schemes in the period were €3.1m (2014 : €2.5m).

The trustees of the Parent Society scheme have obtained an actuarial valuation dated 1 January 2014 using the projected unit valuation method. The trustees of the Adams Foods Limited scheme have obtained an actuarial valuation dated 31 December 2012 using the projected unit valuation method. Valuations as at 26 December 2015 have been obtained for the internally funded schemes. These valuations, and the most recent actuarial valuations of the other post retirement schemes, have been updated by independent qualified actuaries to take account of the requirements of FRS 102, in order to assess the liabilities of the schemes as at 26 December 2015.

It has been agreed that an employer contribution rate of 20.6% of pensionable pay plus an additional €1.0m will apply in future years for the Irish scheme and the expected contributions for 2016 are €2.0m. For the other schemes it has been agreed that an employer contribution rate of 19% of pensionable salary plus an additional €0.4m will apply in future years and that the expected contributions for 2016 are €0.9m.

Financial assumptions

The major assumptions used by the actuaries to calculate scheme liabilities are:

2015201420152014
Irish SchemeOther Schemes
%%%%
Inflation rate1.751.752.202.10
Salary rate increases2.752.754.354.25
Pension payment increases1.751.752.202.10
Discount rate2.602.103.803.50

In valuing the liabilities of the pension fund at 26 December 2015, mortality assumptions have been made as indicated below.

The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65 year old to live for a number of years as follows:

Irish Scheme 2015Irish Scheme 2014Other Schemes 2015/2014
- Current pensioner aged 6524 years male25 years female23 years male25 years female23 years male25 years female
- Future retiree* upon reaching 6527 years male28 years female26 years male27 years female25 years male27 years female

The assumptions used by the actuary are chosen from a range of possible actuarial assumptions which, due to the timescale covered, may not necessarily be borne out in practice.

*Retiring in 25 years for the Irish scheme and in 20 years for other schemes.

201520142015201420152014
Irish SchemeOther SchemesTotal
€’000€’000€’000€’000€’000€’000
Equities56,33545,96036,61432,87192,94978,831
Bonds16,29813,34613,08912,34429,38725,690
Property2,2492,0627394,4342,9886,496
Other11,38121,06677464812,15521,714
86,26382,43451,21650,297137,479132,731
Actuarial value of liabilities(108,047)(121,590)(63,450)(61,976)(171,497)(183,566)
Net deficit in the schemes(21,784)(39,156)(12,234)(11,679)(34,018)(50,835)
201520142015201420152014
Irish SchemeOther SchemesTotal
€’000€’000€’000€’000€’000€’000
Analysis of the amount charged to the Group Income Statement during the period:
Current service cost2,0671,5151,0177723,0842,287
Negative past service cost (note 4)(5,087)---(5,087)-
Net interest expense7417234172331,158956
(2,279)2,2381,4341,005(845)3,243
Movement in benefit obligations during the period2015
€’000
2015
€’000
2015
€’000
Benefit obligations at beginning of period121,59061,976183,566
Current service cost2,0671,0173,084
Negative past service cost(5,087)-(5,087)
Interest expense2,4662,2574,723
Plan participant’s contributions315165480
Actuarial gain(10,505)(2,360)(12,865)
Benefits paid(2,799)(3,415)(6,214)
Exchange adjustments-3,8103,810
Benefit obligations at end of period108,047 63,450 171,497
Movement in plan assets during the period
Fair value of plan assets at beginning of period82,43450,297132,731
Interest income1,7251,8403,565
Remeasurement gains / (losses):
Return on plan assets excluding interest income2,579(1,896)683
Employer’s contributions2,0091,0583,067
Plan participant’s contributions315165480
Benefits paid from plan(2,799)(3,415)(6,214)
Exchange adjustments-3,1673,167
Fair value of plan assets at end of period86,263 51,216 137,479
Deficit in schemes(21,784) (12,234) (34,018)
Actual return on plan assets4,304 (56) 4,248