Annual Report & Accounts 2017/18

133 NI Water Annual Report and Accounts 2017/18 Statutory Accounts E2 Employee benefits continued The reconciliation of the opening and closing net pension obligations included in the statement of financial position is as follows: Net defined benefit liability/(asset) reconciliation Total year to 31 March 2018 £000 Total year to 31 March 2017 £000 Opening defined benefit liability 65,984 7,171 Defined benefit cost included in profit 17,600 12,499 Total measurements included in Other Comprehensive Income (49,614) 56,179 Cash flows – employer contributions (11,181) (9,865) Closing defined benefit liability 22,789 65,984 Actual return on plan assets 7,880 28,869 Remeasurement gains and losses are recognised directly in the statement of comprehensive income. Total year to 31 March 2018 £000 Total year to 31 March 2017 £000 Remeasurements (recognised in other comprehensive income) Effect of changes in demographic assumptions (22,382) - Effect of changes in financial assumptions (10,113) 77,248 Effect of experience adjustments (15,239) - Return on plan assets excluding interest income (1,880) (21,069) Total remeasurements included in Other Comprehensive Income (49,614) 56,179 Significant assumptions used in this disclosure Weighted-average assumptions to determine benefit obligation Conditions at 31 March 2018 Conditions at 31 March 2017 Rate of increase in salaries 2.00% for 5 yrs., 3.00% thereafter 2.10% for 3 yrs., 3.10% thereafter Rate of increase in pensions in payment and deferred pensions 3.05% 3.10% Discount rate 2.65% 2.60% Inflation assumption - RPI 3.00% 3.10% Inflation assumption - CPI 2.00% 2.10% For more information in relation to the Company’s defined benefit pension scheme, see Note G3.