(f) Amounts recognised in other comprehensive income
Consolidated
2012
2011
$’000
$’000
Cumulative loss/(gain)
9,549
4,508
Net actuarial loss/(gain) recognised (refer to (*) above)
5,041
(23)
Note 29
Defined benefit plans (continued)
(g) Principal actuarial assumptions
The principal actuarial assumptions used (expressed as weighted averages) were as follows:
Consolidated
2012
2011
Discount rate
3.0%
5.3%
Expected rate of return on assets backing current pension liabilities
8.3%
8.3%
Expected rate of return on assets backing other liabilities
7.3%
7.3%
Future salary increases
4.0%
4.0%
The expected rate of return on assets
assumption is determined by weighing the
expected long‑term return for each asset class
by the target allocation of assets to each class.
The returns used for each class are net of
investment tax and investment fees.
(h) Employer contributions
Employer contributions to the defined
benefit section of the plan are based on
recommendations by the plan’s actuary.
The method used to determine the employer
contribution recommendations at the last
actuarial review was the Aggregate Funding
method. The method adopted affects the timing
of the cost to the employer.
Under the Aggregate Fundingmethod, the employer
contribution rate is determined so that sufficient
assets will be available tomeet benefit payments to
existing members, taking into account the current
value of assets and future contributions.
Total employer contributions expected to be paid
by Group companies for the year ending 30 June
2013 are $751k.
(i) Net financial position of plan
The economic assumptions used by the actuary
to make the funding recommendations were an
expected rate of return on fund assets of 8.6%pa
(FY 2011: 8.6%), a salary increase rate of 2.5%pa
(FY2011: 3.5%) and an inflation rate of 2.5%pa
(FY 2011: 2.5%)
100
