2007 Annual Report - Sappi

Notes to the group annual financial statements continued
for the year ended September 2007
29. Post-employment benefits other than pensions
The group sponsors two defined benefit post-employment plans that provide certain health care and life insurance benefits
to eligible retired employees of the North American and South African operations. Employees are generally eligible for benefits
upon retirement and completion of a specified number of years of service.
Actuarial valuations of all the plans are performed annually.
The North American and the South African post-employment obligations were measured at the end of September 2007.
The following schedule provides the plans’ funded status and obligations for the group.
2007 2006
South North South North
US$ million Africa America Total Africa America Total
Change in present
value of defined
benefit obligation
Defined benefit obligations
at beginning of year 61 103 164 69 109 178
Current service cost 1 2 3 1 3 4
Past service cost – (2) (2) – (4) (4)
Interest cost 6 5 11 5 6 11
Actuarial (gain)
loss experience (6) (3) (9) 3 (3) –
Actuarial loss (gain)
assumptions 13 (4) 9 – 1 1
Gain on curtailment
and settlements – – – – (3) (3)
Benefits paid (6) (6) (12) (4) (6) (10)
Translation difference 9 – 9 (13) – (13)
Defined benefit obligation
at end of year 78 95 173 61 103 164
Present value of wholly
unfunded obligations
Deficit (78) (95) (173) (61) (103) (164)
Unrecognised past
service cost – (6) (6) – (6) (6)
Recognised post
employment benefit liability (78) (101) (179) (61) (109) (170)
134
sappi limited | 07 | annual report