Our Accounts 113
Notes to the financial statements continued
31 December 2012
39. Pension benefit asset/(obligation) (continued)
ii) LV Scheme (continued)
e) Sensitivity analysis: Impact on defined benefit obligation of making changes to key assumptions
Change in assumption Impact on defined benefit obligation
Discount rate Increase by 0.25% Decrease by £48.0m (4.6%)
Inflation rate Increase by 0.25% Increase by £30.5m (2.9%)
Cash commutation Nil Increase by £16.1m (1.5%)
Mortality improvements long term rate Increase by 0.25% Increase by £14.0m (1.3%)
f) Plan asset information
Plan assets are comprised as follows: Allocation Allocation
percentage percentage
2012 2011
Equities 14.5% 11.3%
Debt securities 73.4% 69.0%
Real estate/property 8.6% 8.9%
Other 3.5% 10.8%
Total 100.0% 100.0%
Expected contributions to the scheme for the year ending 31 December 2013 are £20m.
g) Historical disclosure information 2012 2011 2010 2009 2008
£m £m £m £m £m
Asset experience
Asset (gains)/losses during year 33.7 (130.9) (63.9) (30.4) 107.6
Statements and Reviews
Liability experience
Obligation (gains)/losses during year 17.2 3.2 (14.6) (15.5) -
Funded status
Defined benefit obligation (1,059.0) (942.0) (854.4) (813.9) (667.1)
Fair value of assets 1,051.3 1,050.1 870.3 729.7 671.7
Net asset/(obligation) (7.7) 108.1 15.9 (84.2) 4.6
h) Defined contribution pension schemes
New employees are eligible to join the defined contribution scheme. The assets of this scheme are held separately from those of the
Group in an independently administered fund. The Group’s contribution under this scheme amounted to £5.8m (2011: £4.2m).
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