Annual Report and Accounts | 2024
Annual Report and Accounts | 2024
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
b) Defined contribution schemes
The Group operates a number of internal defined contribution pension schemes for certain employees.
The Group’s subsidiary company, Shannon Commercial Enterprises (“the Company”) operated an unfunded defined benefit pension scheme up to the date of transfer to Shannon Group plc on 5 September 2014. Up to that date, under an arrangement with the Exchequer, employer and employee contributions were paid to the Exchequer and the Company recognised a deferred funding asset representing the asset to be recovered from the Exchequer in future periods. The Company also recognised a liability representing the funding deficit for post-retirement pension increases. In accordance with the Shannon Group Act, all liabilities, duties, obligations and funding (including pension increases and supplementary pension payments) arising by virtue of the operation of the scheme were transferred to the Minister for Jobs, Enterprise and Innovation on date of transfer. Therefore, for the years ended 31 December 2024 and 2023, the Group has accounted for the scheme as a defined contribution pension scheme. Payments made to these pension schemes are charged annually in the financial statements and for the year ended 31 December 2024, the total expense recognised was €1,364,000 (2023: €1,258,000) , of which €121,000 was payable at year end (2023: €117,000) .
24. EMPLOYEE BENEFITS (Continued)
Defined benefit obligation
Actuarial assumptions The following table summarises the main assumptions adopted in respect of the defined benefit scheme. The assumptions, including the expected long-term rate of return on assets, have been set up on the advice of the company’s actuary.
2024
2023
3.6% 2.0%
Discount rate
3.6% 2.3%
Rate of price inflation
-
Rate of increase in salaries
-
The discount rate of 3.6% is based on the AA Corporate Rated Bonds which are considered appropriate for the duration of the liabilities of the schemes. Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities underlying the values of the defined benefit obligation at the reporting date were as follows:
2024 Years
2023 Years
Longevity at age 65 for current pensioners Males
22.6 24.4
22.6 24.3
Females
Longevity at age 65 for current members aged 45 Males
24.4 26.2
24.3 26.1
Females
Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
2024 €’000 Increase/(decrease)
2023 €’000 Increase/(decrease)
63 28
66 31
Discount rate – 0.25% decrease (2023: 0.25%) Inflation – 0.25% increase (2023: 0.25%)
104
105
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