The Board is a participant in the British Tourist Boards'defined benefit pension scheme. An actuarial valuation was carried out using membership data as at 1 April 2001 and updated to 31 March 2002. It is not possible to split the scheme’s assets between individual Boards. The major assumptions used in valuing the liabilities are given below:

Assumptions	As at 31 March 2002
Discount rate	5.9%
Inflation	2.8%
Salary increases	4.5%
Increases to pension in payment in line with RPI	2.8%
Mortality before retirement	Per Annuity mortality tables AM80/AF80
Mortality after retirement	Per Annuity mortality tables PMA80/PFA80(C=2015)

The assets in the scheme and the expected rate of return were:

item	As at 31 March 2002
item	Long term rate of return expected	Value of assets £000
Cash Accumulation Policy	7.5%	109,720
Secured pensions in payment	5.9%	25,248
Secured deferred annuities	5.9%	102
Total market value of assets	-	135,070
Present value of scheme liabilities	-	111,429
Surplus in the scheme	-	23,641

Scottish Tourist Board's share of the surplus is £5,458,000. Commentary During the year ending 31 March 2002, a contribution rate of 6% of pensionable salaries was paid. These contributions included 5% employees'contributions. Pensions paid to two previous Chairmen and two pre-scheme employees are not funded but are a direct charge on Grant-in-Aid. The total unfunded liability for pensions in payment is £168,000. The charge for pension costs in the year is as follows:

item	Current Year £000	Previous Year £000
Pension scheme charge	45	47
Pre-scheme pensioners and previous Chairmen	16	15
	61	62
There is no charge or provision in the accounts for or on behalf of pensions to Board Members.