Telkom AR front.qxp

Notes to the annual financial statements (continued)
for the three years ended March 31, 2009
25. EMPLOYEE BENEFITS (continued)
Telkom Annual Report 2009 299
2007 2008 2009
Rm Rm Rm
The Telkom Pension Fund
The net periodic retirement costs include the following components:
Interest and service cost on projected benefit obligations 22 21 21
Expected return on plan assets (19) (27) (28)
Recognised actuarial loss/(gain) 9 (16) –
Settlement loss/(gain) 21 (2) (3)
Asset limitation – 29 39
Net periodic pension expense recognised 33 5 29
Pension fund contributions (refer to note 5.1) 8 5 (1)
The status of the pension plan obligation is as follows:
At beginning of year 281 205 204
Interest and service cost 22 21 21
Employee contributions 2 2 2
Benefits paid (2) (3) (5)
Settlements (70) (15) (22)
Actuarial gain (28) (6) (1)
Benefit obligation at end of year 205 204 199
Plan assets at fair value:
At beginning of year 243 284 311
Expected return on plan assets 19 27 28
Benefits paid (2) (3) (5)
Contributions 10 8 2
Settlements (61) (15) (22)
Actuarial gain/(loss) 75 10 (67)
Plan assets at end of year 284 311 247