57 (Expressed in Trinidad and Tobago Dollars) NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017 16 Post-employment benefit (continued) Sensitivity analysis 1%pa lower 1%pa higher $’000 $’000 Discount rate 162,589 (127,086) Future salary increases (30,800) 35,339 Future pension increases (97,564) 117,892 An increase of one (1) year in the assumed life expectancies shown above would increase the defined benefit obligation at 30 June 2017 by $21.7 million. These sensitivities were calculated by recalculating the defined benefit obligations using the revised assumptions. Funding The Board meets the balance of the cost of funding the defined benefit Pension Plan and the Board must pay contributions at least equal to those paid by members, which are fixed. The funding requirements are based on regular (at least every three (3) years) actuarial valuations of the Plan and the assumptions used to determine the funding required may differ from those set out above. The Board expects to pay contributions of $11.9 million to the Pension Plan during 2017/18. This increase is based on the completion of the negotiations for the outstanding period. 17 Net realised investment income 2017 2016 $’000 $’000 Interest income 386,548 356,668 Dividend income 382,362 377,129 Rental income 6,702 6,697 Miscellaneous income 7,142 8,923 Income – mutual funds 27,998 11,962 Income – foreign equity 58,567 22,819 Income – foreign bonds 4,496 2,466 Gain on sale of foreign equities 117,411 192,019 Gain/(loss) from foreign exchange 6,301 74,059 Gain on sale of bonds 15,548 9,060 Total realised investment income 1,013,075 1,061,802 Investment expense (77,135) (54,529) Net realised investment income 935,940 1,007,273 18 Net unrealised investment losses Local equity (186,572) (702,537) Foreign equity 442,729 (220,285) Mutual funds 4,533 (20,827) Gains from foreign exchange 87,150 165,409 Investment property valuation (21,250) 68,500 Foreign bonds 115 1,956 Local bonds 66,364 (443,610) 393,069 (1,151,394)