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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
2016
2015
R’000
R’000
Changes in the fair value of the defined benefit plan assets are as follows:
Fair value of plan assets at 1 July
1 701
10 206
Return
136
876
Benefits paid
(123)
(46)
Actuarial loss*
(4)
(9 335)
Fair value of plan assets at 30 June
1 710
1 701
Asset coverage over liabilities (times)
1.5
1.3
*The resulting difference in the prior year in the market value of assets has been noted as an actuarial loss on the assets and is mostly as a result of the allocation of surplus to the
defined contribution members of the Fund in terms of the Fund’s bonus distribution policy, adopted by the Trustees.
Assumptions
%
%
The assumptions used in the valuations are as follows:
Discount rate
9.70
8.30
Future pension increases
7.40
6.20
Estimated asset composition
Cash
74.44
59.75
Bonds
25.56
40.25
Sensitivity analysis
Valuation
R’000
+1%
R’000
-1%
R’000
The liability was recalculated to show the effect of:
2016
A one percentage point increase variance in the discount rate assumption
(1 168)
(1 094)
(1 255)
A one percentage point variance in the pension increase rate
(1 168)
(1 256)
(1 091)
2015
A one percentage point increase variance in the discount rate assumption
(1 318)
(1 236)
(1 414)
A one percentage point variance in the pension increase rate
(1 318)
(1 415)
(1 234)
ANNEXURE C – DEFINED CONTRIBUTION AND DEFINED
BENEFIT PLAN
CONTINUED