NOTES TO THE ACCOUNTS

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9 Pensions

The group maintains a defined contribution scheme, which is open to all new employees, and a number of defined benefit schemes.

The group also has a past service liability in relation to post-employment medical benefits offered to employees to cover any medical costs after employment. The benefit is no longer given to new employees.

Defined contribution pension scheme

Member funds for the defined contribution scheme are held and administered by the Prudential Assurance Company. The total cost recognised in operating profit for the period was £1.6m (2009: £1.5m).

Defined benefit pension schemes and post-employment benefits

The group maintains the following defined benefit schemes which are all closed to new entrants and have had full actuarial valuations in the last four years: Greene King Pension Scheme (closed 2 May 1997, last valued 5 April 2006), Morland Pension Scheme (closed 12 December 2000, last valued 5 April 2006), Belhaven Pension Scheme (closed 31 October 2005, last valued 4 May 2008), and the Hardys & Hansons Pension Scheme (closed 1 July 2003, last valued 30 April 2006). During the prior period the Tolly Cobbold Pension Scheme (closed 29 July 2002, last valued 1 December 2004) merged with the Greene King Pension Scheme.

Member funds for the defined benefit schemes are held in separate funds independently of the group? finances and are administered by pension trustees. Pension benefits are related to members?final salary at retirement and their length of service. The group has opted to recognise all actuarial gains and losses immediately via the statement of comprehensive income.

The total cost recognised in the income statement was:

The total charge recognised in the statement of comprehensive income was:

The total contributions to the defined benefit pension schemes in the following period are expected to be £7.6m (2009: £7.7m) for the group.

The values of the schemes' liabilities have been determined by a qualified actuary based on the results of the last actuarial valuation, updated to 2 May 2010 using the following principal actuarial assumptions:

Mortality assumptions are based on standard tables adjusted for scheme experience and with an allowance for future improvement in life expectancy. Overall expected rate of return on assets is established by applying brokers' forecasts to each category of scheme asset.

The net liability of the schemes and other post-employment benefit, as recognised in the balance sheet, is summarised below:

The movements in the pension schemes' net liability and post-employment benefit liability during the period are as follows:


History of experience adjustments for the current and previous four periods is as follows:


The cumulative amount of actuarial gains and losses recognised since 3 May 2004 in the statement of comprehensive income is £13.2m loss (2009: £25.9m). The amount prior to 3 May 2004 is not determinable as valuations were performed under different accounting and actuarial bases.

The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

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