NOTE 15. RETIREMENT BENEFIT PLANS Defined Contribution Plans Defined Benefit Plan Basis of Valuation On the acquisition of Bristol Water, Capstone recognized an indefinite life intangible asset for the value of the licence to operate the water network  granted by the regulator (“Ofwat”). The licence is related to the exclusive right to operate and invest in the water network within the licenced  geographic area. Ofwat grants a perpetual licence with a 25-year notice. Goodwill is attributed to the utilities – water reporting segment which forms a CGU. Bristol Water and Cardinal operate defined contribution retirement plans for certain employees. The total cost recorded in the statement of income for the year ended December 31, 2013 was $1,563 (December 31, 2012 – $1,319). Defined benefit pension arrangements for Bristol Water's employees are provided through Bristol Water's membership in the WCPS, which provides defined benefits based on final pensionable pay. Bristol Water's membership in the WCPS is through a separate section (the “Section”) of the plan. The assets of the Section are held separately from those of Bristol Water and are invested by discretionary fund managers appointed by the trustees of the plan. The Section has been closed to new entrants and all new eligible employees are offered membership in the defined  contribution pension plan. In addition to providing benefits to employees and former employees of Bristol Water plc, the Section provides benefits to Bristol Water plc  employees who transferred to Bristol Wessex Billing Services Ltd. The majority of the Section assets and liabilities relate to Bristol Water plc employees and former employees. The Section funds are administered by trustees who are independent of the Company. Contributions are paid to the Section in accordance with the  recommendations of an independent actuary. The formal actuarial valuation of Bristol Water's Section of the WCPS as at March 31, 2013 was updated toDecember 31, 2013, by Lane, Clark & Peacock LLP, using the following significant assumptions in accordance with IAS 19: 2013 ANNUAL REPORT  81 Assumptions 2013 2012 Inflation – Retail Price Index 3.6% 3.1% Inflation – Consumer Price Index 2.6% 2.6% Pension increases uncapped 2.6% 2.6% Pension increases capped at 5% 2.6% 2.6% Salary increases 4.1% 4.1% Discount rate 4.4% 4.3% Jan 1, 2012 Additions Foreign Exchange Transfers Dec 31, 2012 Assets Computer software 4,220 28 758 2,538 7,544 Electricity supply, gas purchase and other contracts 108,048 — — — 108,048 Water rights 73,018 — — — 73,018 Licence 21,012 — 504 — 21,516 Goodwill 135,512 — 4,200 — 139,712 Accumulated amortization Computer software (550) (2,060) (659) — (3,269) Electricity supply and gas purchase contracts (43,395) (7,572) — — (50,967) Water rights (9,561) (2,122) — — (11,683) 288,304 (11,726) 4,803 2,538 283,919 Provisions Electricity supply and gas purchase contracts 12,257 — — — 12,257 Utilization (7,363) (1,634) — — (8,997) 4,894 (1,634) — — 3,260