Entire Document - Chris Hani District Municipality

Where councillors/employees leave the plans prior to full vesting of the contributions, the contributions payable by
the municipality are reduced by the amount of forfeited contributions.
The total expense recognised in the Statement of Financial Performance of R6,2 million (2008: R5,9 million)
represents contributions payable to these plans by the municipality at rates specified in the rules of the plans. These
contributions have been expensed.
The Retirement Funds have been valued by making use of the Discounted Cash Flow method of valuation.
Defined Benefit Schemes
Joint Pension Fund:
• The scheme is subject to an annual actuarial valuation. The last statutory valuation was performed as at 30 June 2008.
• The statutory valuation performed as at 30 June 2008 revealed that the fund had a surplus of 182,7 (30 June 2007:
R200,2) million, with a funding level of 106,5% (30 June 2007: 107,2%). The contribution rate paid by the members
(9,00%) and the municipalities (18,00%) is less than the recommended contribution rate of 31,04%.
Government Employees Pension Fund (GEPF):
• No details could be provided for the fund and of any valuation performed.
• A contribution rate is paid by the members (7,50%) and municipalities (13,00%).
South African Local Authorities Pension Fund (SALA):
The scheme is subject to an annual actuarial valuation. The last statutory valuation was performed as at 1 July 2007.
The statutory valuation performed as at 1 July 2007 revealed that the fund had a surplus of 558,4 (1 July 2006:
R286,0) million, with a funding level of 110% (1 July 2006: 106%). The contribution rate paid by the members (7,50%
to 9,00%) and the municipalities (15,00% to 20,80%) is is sufficient to fund the benefits accruing from the fund in
the future.
Defined Contribution Schemes
Joint Pension Fund:
• The scheme is subject to an annual actuarial valuation. The last statutory valuation was performed as at 30 June 2008.
• The statutory valuation performed as at 30 June 2008 revealed that the investment reserve of the fund amounted to
R12 033 (30 June 2007: R20 220) million, with a funding level of 103,3% (30 June 2007: 105,3%). The contribution
rate paid by the members (9,00%) and the municipalities (18,00%) is sufficient to fund the benefits accruing from the
fund in the future.
Cape Joint Retirement Fund:
• The scheme is subject to an annual actuarial valuation. The last statutory valuation was performed as at 30 June 2008.
• The statutory valuation performed as at 30 June 2008 revealed that the assets of the fund amounted to R6 675 (30
June 2007: R7 206) million, with funding levels of 101,1% and 112,2% (30 June 2007: 108,5% and 137,4%) for the
Share Account and the Pensions Account respectively. The contribution rate paid by the members (9,00%) and the
municipalities (18,00%) is sufficient to fund the benefits accruing from the fund in the future.
Municipal Councillors Pension Fund:
• The scheme is subject to an annual actuarial valuation. The last statutory valuation was performed as at 30 June 2006.
188