Page 78 - RFU Annual Report 2018

7 FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
6

27. Defined benefit pension scheme

The RFU operates a defined benefit pension scheme in the UK. The scheme is closed to new entrants. This is a separate
trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation
was carried out at 30 April 2017 and updated to 30 June 2018 by a qualified actuary, independent of the scheme’s sponsoring
employer. The most recent FRS 102 valuation shows a £2.5m pension scheme surplus compared with a deficit of £3.om last
year. The major assumption used by the actuary are shown below.

The most recent actuarial valuation as at 30 April 2017 showed a deficit of £4.6m. The RFU has agreed with the trustees
that it will pay annual deficit reduction contributions of £500,000 each year until July 2021 and subsequently £167,500 each
year until July 2025. In addition, and in accordance with the acturial valuation, the employer has agreed with the trustees
that it will pay 41.5% of pensionable earnings in respect of the current cost of accruing benefits. The RFU will separately
meet expenses of the scheme, insurance premiums for death-in-service benefits and levies to the Pension Protection Fund.
Member contributions are payable in addition at the rate of 5.0% of pensionable pay.

Present value of defined benefit obligation, fair value of assets and defined pension liability:
2018 2017
Balance sheet impact £m £m

Fair value of plan assets 40.5 40.0
Present value of defined benefit obligation (38.0) (43.0)

Defined pension asset/(liability) 2.5 (3.0)

2018 2017
Reconciliation of the opening and closing balances of the defined benefit obligation £m £m

Defined benefit obligation at start of period 43.0 44.0
Current service cost 0.4 0.7
Interest expense 1.2 1.3
Contributions by plan participants 0.1 0.1
Actuarial (gain) (4.7) (1.4)
Benefits paid (2.0) (1.7)

Defined benefit obligation at end of period 38.0 43.0

2018 2017
Reconciliation of the opening and closing balances of the fair value of scheme assets £m £m

Fair value of plan assets at start of period 40.0 38.9
Interest income 1.1 1.2
Actuarial gains 0.8 1.0
Contributions by the RFU 0.5 0.5
Contributions by plan participants 0.1 0.1
Benefits paid (2.0) (1.7)

Fair value of plan assets at end of period 40.5 40.0

The actual return on the plan assets over the period ended 30 June 2018 was £1.8m (2017: £2.2m).

Annual
Report
2018