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## NOTEs TO THE FINANCIAL sTATEMENTs 

FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 

21. PENsION AssETs AND LIABILITIEs (CONTINUED) 

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(e) CATeGoRieS oF PlAn ASSeTS 

The major categories of plan assets as a percentage of the fair value of the total defined benefit plan assets are as follows: 

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(F) PRinCiPAl ACTuARiAl ASSuMPTionS 

The principal actuarial assumptions used (expressed as weighted averages) were as follows: 

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The expected rate of return on assets has been determined by weighting the expected long term return for each class by the target allocation of assets to each asset class. This resulted in a 6.8% p.a. rate of return, net of tax and expenses (2012: 7.0% p.a.). 

(G) EMPLOYER CONTRIBUTIONS 

Employer contributions to the defined benefit section of the plans are based on recommendations by the plans’ actuaries. Actuarial assessments are made at two yearly intervals for Australia and the last actuarial assessment of Fairfax Media Super was carried out as at 1 July 2012 by Mercer Human Resource Consulting Pty Ltd. Actuarial assessments are made at three yearly intervals for New Zealand and the last actuarial assessment of Fairfax NZ Retirement Fund was carried out as at 1 April 2011 by AoN Consulting New Zealand Limited. Fairfax New Zealand Superannuation Fund and Fairfax NZ Senior Executive Superannuation Scheme are defined contribution funds and do not require an actuarial assessment. 

The objective of funding is to ensure that the benefit entitlements of members and other beneficiaries are fully funded by the time they become payable. To achieve this objective, the actuary has adopted a method of funding benefits known as the aggregate funding method. This funding method seeks to have benefits funded by means of a total contribution which is expected to be a constant percentage of members’ salaries over their working lifetimes. 

Total employer contributions expected to be paid by Group companies for the 2014 financial year are $0.9 million. 

