PA Group Annual Report 2007
NOTES TO THE FINANCIAL
STATEMENTS
(continued)
28. Pensions (continued)
Asset distribution and expected return
31 December 2007 31 December 2006 31 December 2005
Expected Fair value Expected Fair value Expected Fair value
Return pa £ million Return pa £ million Return pa £ million
Equities 7.2% 77.0 7.5% 74.5 7.1% 75.4
Bonds 5.6% 11.8 5.1% 11.7 4.7% 10.8
Gilts 4.4% 44.8 4.6% 40.4 4.1% 32.1
Property 7.2% 3.4 7.5% 3.7 7.1% 3.3
Other 5.5% 0.9 5.0% 0.8 4.5% 0.4
Total 137.9 131.1 122.0

Balance sheet
2007 2006
£ million £ million
Total fair value of assets 137.9 131.1
FRS 17 value of liabilities (132.3) (130.4)
Gross pension asset 5.6 0.7
Related deferred tax liability (1.6) (0.2)
Net pension asset 4.0 0.5
The fund is represented on the balance sheet as at 31 December 2007 as an asset of £5.6m under FRS 17 (2006: an asset
of £0.7m), which amounts to an asset of £4.0m net of deferred tax (2006: an asset of 0.5m).
Over the year to 31 December 2007, contributions by the group of £3.2m (2006: £2.3m) were made to the fund. This
included special contributions of £0.6m (2006: £0.4m), and contributions in respect of members who opted for the salary
conversion arrangement. At 31 December 2007, employer contributions of £0.2m were due to the fund but unpaid at that date.
It has been agreed that future employer contributions will be at a rate of 15.0% of pensionable salaries for 2008, plus special
contributions totalling £620,000 in 2008. Rates will be reviewed following the next actuarial valuation, due as at 31 December 2008.
The post retirement surplus moved over the period as follows:
2007 2006
£ million £ million
Post retirement surplus at start of year 0.7 2.0
Current service cost (employee and employer) (3.3) (3.7)
Contributions (employee and employer) 3.6 3.2
Curtailment and settlement - 0.4
Other net finance income 1.8 1.8
Actuarial gain/(loss) recognised in STRGL 2.8 (3.0)
Post retirement surplus at end of year 5.6 0.7
40
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