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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
SIX
THREE
ONE
FOUR
TWO
ANNEXURE C –
DEFINED CONTRIBUTION AND DEFINED BENEFIT PLAN
Defined contribution plan
The Company and its subsidiaries contribute to a defined contribution plan for all employees in South Africa.
These contributions are expensed.
Contributions to the defined contribution plan expected in the following year are R98.2 million (2015: R81.1million).
Defined benefit plan
In addition, the Company and its subsidiaries contribute to a retirement benefit fund in respect of certain retirees. The assets of the funds are
held in independent trustee administered funds, administered in terms of the Pension Funds Act No 24 of 1956, as amended. Funds must, in
terms of the Pension Fund Act, be valued at least every three years. The last full actuarial valuation was done on 30 September 2013.
For purposes of production of these disclosures, and in order to comply with the requirements of IAS 19, valuations have been performed by
independent actuaries, using the Projected Credit Unit method. Where valuations were not possible due to the limited availability of complete
data, roll forward projections of prior completed actuarial valuations were used, taking account of actual subsequent experience. The timing
of benefit payments are uncertain.
The disclosure of the funded status is for accounting purposes only, and does not necessarily indicate any assets available to the Group.
2016
2015
R’000
R’000
Net benefit expense
Interest cost on defined benefit obligation
104
129
Interest income on assets
(136)
(876)
Effect of paragraph 64
32
747
Net benefit expense
–
–
Benefit liability
Defined benefit obligation
(1 168)
(1 318)
Fair value of plan assets
1 710
1 701
542
383
Unrecognised due to Paragraph 64 limit
(542)
(383)
–
–
Changes in the present value of the defined benefit obligation are as follows:
Defined benefit obligation at 1 July
(1 318)
(1 523)
Interest cost
(104)
(129)
Benefits paid
123
46
Actuarial gains on obligation
131
288
Defined benefit obligation at 30 June
(1 168)
(1 318)