Notes to the Accounts
60
SCIENCE FOUNDATION IRELAND ANNUAL REPORT 2015
Notes to the Accounts
For the year ended 31 December 2015
( d ) General Description of the scheme Science Foundation Ireland has responsibility for the pension costs of :
1 . staff with effect from 16th July 2014 , under the Industrial Development ( Forfás Dissolution ) Act 2014 . Staff who are / were members of the Forfás Pension Scheme joined the new Science Foundation Ireland pension scheme on superannuation terms no less favourable than those they enjoyed under the Forfás scheme immediately before the date of transfer from Forfás to SFI .
2 . staff who are members of the Single Public Service pension scheme .
Both schemes are defined benefit pension schemes and are fully funded annually on a pay as you go basis from monies provided by the Department of Jobs , Enterprise and Innovation .
The scheme is a defined benefit final salary scheme with retirement benefits linked to final salary and length of service . The valuation used for FRS 102 disclosures are based on an actuarial review of the Science Foundation Ireland Superannuation scheme for the financial year ending 31 December 2015 carried out by a qualified independent actuary , taking account of the requirements of the FRS in order to assess the scheme liabilities at 31 December 2015 .
The principal actuarial assumptions were as follows : Liabilities shown in the Financial Accounts are computed using the Projected Unit Credit method .
2015 2014
Financial Assumptions Discount Rate |
2.85 % p . a .* |
2.50 % p . a .* |
Future Salary Increases |
3.30 % p . a . |
2.75 % p . a . |
Future State Pension increases |
3.30 % p . a . |
2.75 % p . a . |
Future Pension Increases |
2.80 % p . a . |
2.25 % p . a . |
Future inflation |
1.80 % p . a . |
1.25 % p . a . |
Revaluation in deferment |
2.80 % p . a . |
2.25 % p . a . |
* discount rate reflects a duration of liabilities of approximately 31 years ( 32 years in 2014 )
Demographic Assumptions |
|
62 % PNMLOO |
62 % PNMLOO |
Mortality pre-Retirement |
( Males ) |
( Males ) |
70 % PNFLOO |
70 % PNFLOO |
( Females ) |
( Females ) |
|
58 % ILT15 |
58 % ILT15 |
Mortality post-Retirement |
( Males ) |
( Males ) |
62 % ILT15 |
62 % ILT15 |
( Females ) |
( Females ) |
Retirement age |
|
|
New entrants |
Age 65 |
Age 65 |
Other members |
Age 62 |
Age 62 |
The Mortality basis explicitly allows for improvements in life expectancy over time , so that life expectancy at retirement will depend on the year in which a member attains retirement age ( age 65 ). The table below shows the life expectancy for members attaining age 65 in 2015 and 2035 .
Year of attaining age 65 2015 2035
Life expectancy - Male |
20.9 |
23.5 |
Life expectancy - Female |
23.5 |
25.6 |