The Group operates defined benefit pension schemes in Coillte Teoranta and Medite Europe Limited for the majority of employees with assets held in separately administered funds.

Actuarial valuation
The pension costs relating to the Group’s defined benefit schemes are assessed in accordance with the advice of independent qualified actuaries. The valuations were based on the attained age and the projected unit credit method and the last full valuations were carried out on 1 January 2009 (Medite Europe Limited) and 31 December 2008 (Coillte Teoranta).

The assumptions which have the most significant effect on the results of the actuarial valuations are those relating to the rate of return on investments and the rates of increase in remuneration and pensions. It was assumed that the rate of return on investments would on average exceed annual remuneration by 3% (Coillte Teoranta) and 2% (Medite Europe Limited) in the last full valuations and pension increases by 3% in Coillte Teoranta. No provision was made for future pension increases in Medite Europe Limited.

The market value of the assets in the Group’s defined benefit schemes at the respective valuation dates was €113.2m (Coillte Teoranta — 31 December 2008) and €10.7m (Medite Europe Limited — 1 January 2009) and the deficiency in both schemes at those dates were €89.4m (Coillte Teoranta) and €8.9m (Medite Europe Limited).

The valuations indicated that the actuarial value of the total scheme assets was sufficient to cover 56% of the benefits that had accrued to the members of the combined scheme as at the valuation dates. Coillte Teoranta and Medite Europe Limited contribute to their respective scheme at a rate of 25% and 15.4% respectively. The actuarial reports of both schemes are available to scheme members, but not for public inspection.

A funding proposal in respect of the Coillte Teoranta scheme has been approved by the Pensions Board. The funding proposal has the objective of returning the scheme to full solvency on a Minimum Funding Standard basis by 31 December 2020. The agreement requires Coillte to make significant additional contributions and has also increased employee contributions.

The cumulative actuarial loss recognised in the statement of total recognised gains and losses up to and including the financial year ended 31 December 2011 is €42,046,000 (2010: loss €5,366,000).

The actual return on plan assets was:

Expected contributions for the year ended 31 December 2012 are €7,914,000.

The following amounts were measured in accordance with the requirements of FRS 17 at 31 December 2007-2011 inclusive.

For the purposes of disclosure under FRS 17 — ‘Retirement Benefits’ the assets and liabilities of the Coillte Teoranta and Medite Europe Limited defined benefit schemes have been combined in 2011. Under FRS 17 the deficit in the Coillte Teoranta scheme net of deferred tax was €122.0m (2010: deficit of €80.9m) and the deficit in the Medite Europe Limited scheme net of deferred tax was €8.5m (2010: deficit of €5.5m).

Assumptions regarding future  mortality are set based on advice from published statistics and experience.  The average life expectancy in years for a pensioner retiring aged 65 is as follows:

Sensitivity analysis of the scheme liabilities
A decrease of 1% in the discount rate would increase the Coillte defined benefit pension scheme obligation by €52.4m and an increase of 1% in the discount rate would decrease the Coillte defined benefit pension scheme obligation by €42.1. A decrease of 1% in the discount rate would increase the Medite defined benefit obligation by €5.5m and an increase of 1% in the discount rate would decrease the Medite defined benefit pension scheme obligation by €4.2m.

SmartPly Europe Limited and Coillte Panel Products UK Limited contribute to defined contribution pension schemes on behalf of certain employees. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension cost for the period for SmartPly Europe Limited amounted to €357,000 (2010: €363,000) and contributions of €37,000 (2010: €24 ,000) were not transferred to the fund until after the year end. The pension cost for the period for Coillte Panel Products UK Limited amounted to €86,000 (2010: €109,000) and contributions of €3,000 (2010: €3,000) were not transferred to the fund until after the year end.

The Group contributes to a separately funded defined contribution pension scheme on behalf of certain employees in Coillte Teoranta and Medite Europe Limited who are not members of the defined benefit schemes. The assets of these schemes are held separately from those of the Group in an independently administered scheme. The pension cost for the period amounted to €181,000 (2010: €200,000) and contributions of €22,000 (2010: €27,000) were not transferred to the fund until after the year end.

• 7. Taxation
• Notes to the Financial Statements
• 10. Tangible assets