Note 18 Defined Benefit Pension Schemes (continued) 2016/17 2017/18 PPS LPGS PPS LPGS Basis for Estimating Assets and Liabilities £’000 £’000 £’000 £’000 Liabilities have been assessed on an actuarial basis using Mortality Assumption: the projected unit credit method, an estimate of the Longevity at 65 for future pensioners (in years) pensions that will be payable in future years, dependent 25.2 25.1 24.5 25.2 Men on assumptions about mortality rates, employee turnover 27.3 28.0 Women 26.1 28.1 and salary levels etc. The liabilities of the Police Pension 138 Longevity at 65 for current pensioners (in years) and Compensation Schemes have been assessed by the | 23.2 22.9 Men 22.6 23.0 Government Actuary’s Department (GAD). The LGPS fund ANNUALACCOUNTS 25.2 25.7 Women 24.2 25.8 liabilities have been assessed by Mercer, using estimates based on the latest full valuation of the scheme as at 31 Financial Assumptions March 2016. 2.65% 2.60% Rate for discounting scheme liabilities 2.55% 2.70% 2.35% 2.20% Rate of inflation (CPI) 2.30% 2.10% 2.35% 2.20% Rate of increase in pensions 2.30% 2.20% 2017/2018 3.45% 2.20% Rate of CARE revaluation 3.55% 2.10% 4.35% 3.45% Rate of increase in salaries (long term ) 4.30% 3.35% 1.00% 1.00% Rate of increase in salaries (short term to 31/03/2020) 1.00% 1.25% NOTESTO THE
Note 18 Defined Benefit Pension Schemes (continued) Basis for Estimating Assets and Liabilities Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years, dependent on assumptions about mortality rates, employee turnover and salary levels etc. The liabilities of the Police Pension and Compensation Schemes have been assessed by the Government Actuary’s Department (GAD). The LGPS fund liabilities have been assessed by Mercer, using estimates based on the latest full valuation of the scheme as at 31 March 2016. 2016/17 2017/18 PPS LPGS PPS LPGS £’000 £’000 £’000 £’000 Mortality Assumption: Longevity at 65 for future pensioners (in years) 25.2 25.1 Men 24.5 25.2 27.3 28.0 Women 26.1 28.1 Longevity at 65 for current pensioners (in years) 23.2 22.9 Men 22.6 23.0 25.2 25.7 Women 24.2 25.8 Financial Assumptions 2.65% 2.60% Rate for discounting scheme liabilities 2.55% 2.70% 2.35% 2.20% Rate of inflation (CPI) 2.30% 2.10% 2.35% 2.20% Rate of increase in pensions 2.30% 2.20% 3.45% 2.20% Rate of CARE revaluation 3.55% 2.10% 4.35% 3.45% Rate of increase in salaries (long term ) 4.30% 3.35% 1.00% 1.00% Rate of increase in salaries (short term to 31/03/2020) 1.00% 1.25% 138 | ANNUALACCOUNTS 2017/2018 NOTESTO THE
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