Table:
|  | 2019 | 2018 |
| --- | --- | --- |
|  | % | % |
| Discount rate for scheme liabilities | 2.45 | 2.60 |
| CPI inflation | 2.35 | 2.25 |
| RPI inflation | 3.45 | 3.35 |
| Pension increases |  |  |
| Pre 1988 GMP | – | – |
| Post 1988 GMP | 2.10 | 2.10 |
| Pre 2004 non GMP | 5.00 | 5.00 |
| Post 2004 | 3.35 | 3.25 |
Paragraphs:
Assumptions used
The last triennial actuarial valuation of the Scheme was performed by an independent professional actuary at 30 April 2018 using the projected unit method of valuation. For the purposes of IAS 19 (revised) the actuarial valuation as at 30 April 2018 has been updated on an approximate basis to 31 March 2019. There have been no changes in the valuation methodology adopted for this year’s disclosures compared to the prior year’s disclosures.
The principal financial assumptions used to calculate the liabilities under IAS 19 (revised) are as follows:
The financial assumptions reflect the nature and term of the Scheme’s liabilities.
Question:
What do the financial assumptions reflect?
Answer: the nature and term of the Scheme’s liabilities