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## Asset Allocation 

The following table summarizes the market value of assets, present value of liabilities and resulting surplus for Bristol Water's Section of the defined benefits pension plan. The assets include a breakdown by the main asset classes. 

<img src='content_image/194308.jpg'>

The majority of the Section assets are held within instruments with quoted market prices in an active market. 

## Demographic Assumptions 

The mortality assumptions have been drawn from actuarial table S1NA with a 95% adjustment to mortality rates and with future improvements in line with CMI 2012 projections from 2003, subject to a minimum increase of 1.3% and 1.0% per annum, for males and females, respectively. Per the mortality assumptions used the average life expectancy for a male pensioner currently aged 60 is 27.4 years and for a female pensioner currently aged 60 is 29.7 years (December 31, 2012 – 26.9 male, 29.2 female). 

The allowance made for future improvements in longevity is such that a male member retiring at age 60 in 2038 (i.e. in 25 years' time) is assumed to have an increased average life expectancy from retirement of 29.9 years, and for a female retiring at age 60 in 2038 is assumed to have increased to 31.8 years (December 31, 2012 – 28.9 male, 30.8 female). 

The weighted average duration of the expected benefit payments from the Section is around 16 years. 

## Contributions 

Contributions paid in the year to the Section were $3,840 (£2,383) (December 31, 2012 – $4,400 (£2,778)). For normal employer contributions after April 1, 2012 Bristol Water was required to contribute at the rates of 29% for the main sub Section and 17% for the alternative benefits sub Section of the relevant payroll costs. Prior to April 1, 2012, Bristol Water contributed 21% and 10%, respectively. The estimated amount of the total employer contribution expected to be paid to the Section for the year ending December 31, 2014 is $4,374 (£2,485). 

## Changes in Comprehensive Income 

Analysis of operating expense, interest expense and amounts recognized in other comprehensive income: 

<img src='content_image/194307.jpg'>

