Entire Document - Chris Hani District Municipality
Entire Document - Chris Hani District Municipality
Entire Document - Chris Hani District Municipality
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The history of experienced adjustments is as follows:<br />
2009 2008 2007 2006 2005<br />
R R R R R<br />
Present Value of Defined Benefit<br />
Obligation<br />
18 460 067 15 762 816 13 331 046 - -<br />
Deficit 18 460 067 15 762 816 13 331 046 - -<br />
Experienced adjustments on Plan<br />
Liabilities<br />
(1 084<br />
656)<br />
- - - -<br />
In accordance with the transitional provisions for the amendments to IAS 19 Employee Benefits in December 2004,<br />
the disclosures above are determined prospectively from the 2009 reporting period.<br />
The effect of a 1% movement in the assumed rate of health care cost inflation is as follows:<br />
2009 2008<br />
R<br />
R<br />
Increase:<br />
Effect on the aggregate of the current service cost and the interest cost 437,065 300,013<br />
Effect on the defined benefit obligation 2,570,140 2,263,725<br />
Decrease:<br />
Effect on the aggregate of the current service cost and the interest cost (356,789) (244,835)<br />
Effect on the defined benefit obligation (2,142,742) (1,879,861)<br />
The municipality expects to make a contribution of R2 956 million (2008: R2 631 million) to the Defined Benefit Plans<br />
during the next financial year.<br />
The transitional Defined Benefit Liabilities for Post-retirement Medical Aid Benefits have been recognised in the Annual<br />
Financial Statements of the municipality as at 30 June 2007 in terms of IAS 19, Employee Benefits, paragraph155(a).<br />
The municipality has elected to recognise the full increase in this Defined Benefit Liability immediately, thus the full<br />
transitional liability have been recognised as at 30 June 2007.<br />
Refer to Note 41 “Multi-employer Retirement Benefit Information” to the Annual Financial Statements for more<br />
information regarding the municipality’s other retirement funds that is Provincially and Nationally administered.<br />
15. Non-Current provisions<br />
2009 2008<br />
R<br />
R<br />
Provision for Long Service Awards 2 731 024 2 597 771<br />
Total Non-current Provisions 2 731 024 2 597 771<br />
Non-current Provisions have been restated to adhere to the disclosure provisions of IAS 19. Refer to Note 31.3 on<br />
“Change in Accounting Policy” for details of the restatement.<br />
153
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