| |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED |
| for the year ended 30 June 2007 |
| |
All monetary amounts are expressed
in millions of Rands |
|
2007 |
Restated
2006 |
| 44. |
RETIREMENT AND OTHER BENEFIT PLANS (continued) |
|
|
|
| 44.7 |
Defined benefit plan – pension scheme |
|
|
|
|
The Group is the principal employer for a defined benefit pension scheme in the
United Kingdom, the Multi (UK) Limited Pension Scheme. Membership only comprises
pensioners and deferred pensioners. |
|
|
|
|
Present value of funded liability |
|
52,9 |
51,1 |
|
Fair value of plan assets |
|
(55,7) |
(56,7) |
| |
Unrecognised actuarial gain |
|
(2,8) |
(5,6) |
|
The disclosure of the funded status is for accounting purposes only, and does not
indicate available assets to the Group. |
|
|
|
|
The most recent actuarial valuations of the plan assets and the present value of the
defined obligations were carried out at 30 June 2007 by Barnett Waddingham LLP.
The present value of the defined benefit obligation, and the related current service
costs were measured using the projected unit credit method. |
|
|
|
|
The components of the income statement pension expense are as follows: |
|
|
|
|
Current service cost |
|
0,4 |
– |
|
Interest cost |
|
2,8 |
2,2 |
|
Expected return on plan assets |
|
(2,9) |
(2,5) |
| |
|
|
0,3 |
(0,3) |
|
Movements in the net asset were as follows: |
|
|
|
|
Present value at beginning of year |
|
– |
– |
|
Cumulative actuarial gain unrecognised due to paragraph 58A limits |
|
(5,6) |
(5,9) |
|
Amounts recognised in the income statement |
|
0,3 |
(0,3) |
|
Unrecognised actuarial gains |
|
2,7 |
1,4 |
|
Exchange rate adjustment |
|
(0,2) |
(0,8) |
|
Restriction on asset not recognised |
|
2,8 |
5,6 |
| |
At 30 June |
|
– |
– |
|
The principal actuarial assumptions used for accounting purposes were: |
|
|
|
|
Discount rate |
|
5,9% |
5,3% |
|
Expected return on scheme assets |
|
5,0% |
5,0% |
|
Rate of increase in pension payments |
|
3,6% |
3,1% |
|
Rate of increase in pensions in deferment |
|
3,6% |
3,1% |
|
Rate of inflation |
|
3,6% |
3,1% |
|
The plan assets do not directly include any significant group financial instruments, nor any property occupied by, or other assets
used by, the Group. |
|
The actual return on plan assets was a loss of R0,5 million (2006: Profit R0,7 million). |
|
The overall expected rate of return is calculated by weighing the individual rates in accordance with the anticipated balance in the plan’s investment portfolio. |
| |
The Group does not expect to contribute any amount to this defined benefit plan in 2008. |
|
|
|
|
|
|
| |
| |
|
|
