95 FAIRFAX MEDIA  LIMITED  2013  NOTEs TO THE FINANCIAL sTATEMENTs  FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 21. PENsION AssETs AND LIABILITIEs (CONTINUED) 30June 2013 $’000 24 JUNE 2012 $’000 (d) AMounTS ReCoGniSed in inCoMe STATeMenT The amounts recognised in the income statement are as follows: Current service cost  768   917  Interest cost  497   999  Curtailments  (924)  (410) Expected return on plan assets  (1,131)  (1,257) Total included in employee benefits expense  (790)  249  Actual return on plan assets  2,527   (40) The major categories of plan assets as a percentage of the fair value of the total defined benefit plan assets are as follows: (F) PRinCiPAl ACTuARiAl ASSuMPTionS (e) CATeGoRieS oF PlAn ASSeTS (G) EMPLOYER CONTRIBUTIONS The expected rate of return on assets has been determined by weighting the expected long term return for each class by the  target allocation of assets to each asset class. This resulted in a 6.8% p.a. rate of return, net of tax and expenses (2012: 7.0% p.a.).  Employer contributions to the defined benefit section of the plans are based on recommendations by the plans’ actuaries.  Actuarial assessments are made at two yearly intervals for Australia and the last actuarial assessment of Fairfax Media Super  was carried out as at 1 July 2012 by Mercer Human Resource Consulting Pty Ltd. Actuarial assessments are made at three  yearly intervals for New Zealand and the last actuarial assessment of Fairfax NZ Retirement Fund was carried out as at 1 April  2011 by AoN Consulting New Zealand Limited. Fairfax New Zealand Superannuation Fund and Fairfax NZ Senior Executive  Superannuation Scheme are defined contribution funds and do not require an actuarial assessment. The objective of funding is to ensure that the benefit entitlements of members and other beneficiaries are fully funded by  the time they become payable. To achieve this objective, the actuary has adopted a method of funding benefits known as  the aggregate funding method. This funding method seeks to have benefits funded by means of a total contribution which  is expected to be a constant percentage of members’ salaries over their working lifetimes. Total employer contributions expected to be paid by Group companies for the 2014 financial year are $0.9 million. The principal actuarial assumptions used (expressed as weighted averages) were as follows: 2013 % 2012 % Discount rate  2.7   2.6  Expected return on plan assets  6.8   7.0  Future salary increases  4.0   4.0  30June 2013 % 24 JUNE 2012 % Cash  26   6  Australian equities  18   25  Overseas equities  26   28  Fixed interest securities  17   19  Property  4   7  Other  9   15 