NOTE 08
NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
(iv) Categories of plan assets
The asset recognised does not exceed the present value of any economic benefits available in the form of reductions in
future contributions to the plan.
All Pooled Fund assets are invested by SASS Trustee Corporation at arm’s length through independent fund managers,
assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute
fund assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.
2014
The major category of plan assets are as follows:
Quoted
$’000
Un-quoted
$’000
Total
$’000
Equity instruments
19,667
3,025
22,692
Property
894
2,379
3,273
Short term securities
1,573
880
2,453
Fixed interest securities
11
3,235
3,246
Other assets
565
5,764
6,329
Total
22,710
15,283
37,993
2014
2013
Equity instruments
60%
57%
Property
8%
8%
Short term securities
7%
13%
Fixed interest securities
8%
9%
Other assets
17%
13%
Total
100%
100%
(v) Actuarial assumptions and sensitivity
The significant actuarial assumptions (expressed as weighted averages) were as follows:
2014
2013
Discount rate
3.6%
3.8%
Rate of CPI increase
2.5%
2.5%
Future salary increases
2.3%
2.3%
The sensitivity of the total defined benefit obligation as at 30 June 2014 under several scenarios is shown below.
Scenarios related to changes to the discount rate, salary growth rate and rate of CPI increase relate to sensitivity of
the total defined benefit obligation to economic assumptions, and scenarios related to pensioner mortality relate to
sensitivity to demographic assumptions. 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.
Impact on defined benefit obligation
Change in
assumption
Increase in
assumption
Decrease in
assumption
$’000
$’000
Discount rate
1.0%
(3,724)
4,548
Salary growth rate
0.5%
1,368
(1,300)
Rate of CPI increase
0.5%
697
(633)
Pensioner mortality rate
5.0%
(102)
108
(g) Non-current liabilities - Defined benefit plans (continued)
72
