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This excerpt taken from the ICI 20-F filed Mar 31, 2006. Mortality assumptions – UK Following an in depth analysis of the mortality experience in the two main UK funds (“Funds”) carried out as part of the formal valuation of the Funds as at 31 March 2005, it was decided to make a change to the mortality assumptions used in both Funds’ formal valuations, both in terms of the current mortality table applied and the allowance for future improvements in longevity. The updated mortality tables adopted as at 31 March 2005 were PMA92C05MC with a +1.75 year age-rating for male members retiring in normal health and PFA92C05MC with a +2.25 age-rating for female members retiring in normal health, with allowance for future mortality improvements in line with the medium cohort. This change has been carried through into the calculation of the pension liabilities reflected in the balance sheet as at 31 December 2005 for both of the main UK Funds. The table below illustrates the effect of this change on the expected age at death of an average member retiring currently at age 62 and one who retires at age 62 in 10 years time. The figures at 31 December 2004 are based on the demographic assumptions underlying the previous formal valuation of the ICI Pension Fund as at 31 March 2003 and were applied in the calculation of the pension liabilities at 31 December 2004. The figures at 31 December 2005 are those derived from the 31 March 2005 valuation. Shorter longevity assumptions are used for members who retire on grounds of ill-health.
Assumed healthcare cost trend rates have a significant effect on the amounts recognised in profit or loss. A one percentage point movement in assumed healthcare cost trend rates would have the following effects:
Notes relating to the Group accounts
25 Post-retirement benefits (continued) This excerpt taken from the ICI 6-K filed Mar 14, 2006. Mortality assumptions – UK Following an in depth analysis of the mortality experience in the two main UK funds (“Funds”) carried out as part of the formal valuation of the Funds as at 31 March 2005, it was decided to make a change to the mortality assumptions used in both Funds’ formal valuations, both in terms of the current mortality table applied and the allowance for future improvements in longevity. The updated mortality tables adopted as at 31 March 2005 were PMA92C05MC with a +1.75 year age-rating for male members retiring in normal health and PFA92C05MC with a +2.25 age-rating for female members retiring in normal health, with allowance for future mortality improvements in line with the medium cohort. This change has been carried through into the calculation of the pension liabilities reflected in the balance sheet as at 31 December 2005 for both of the main UK Funds. The table below illustrates the effect of this change on the expected age at death of an average member retiring currently at age 62 and one who retires at age 62 in 10 years time. The figures at 31 December 2004 are based on the demographic assumptions underlying the previous formal valuation of the ICI Pension Fund as at 31 March 2003 and were applied in the calculation of the pension liabilities at 31 December 2004. The figures at 31 December 2005 are those derived from the 31 March 2005 valuation. Shorter longevity assumptions are used for members who retire on grounds of ill-health.
Assumed healthcare cost trend rates have a significant effect on the amounts recognised in profit or loss. A one percentage point movement in assumed healthcare cost trend rates would have the following effects:
Notes relating to the Group accounts
25 Post-retirement benefits (continued) | EXCERPTS ON THIS PAGE:
RELATED TOPICS for ICI: |
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