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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
18
RETIREMENT BENEFITS OF EMPLOYEES
GROUP
CSIR
2011 2010 2011 2010
R’000 R’000 R’000 R’000
18.4 Post-retirement medical benefits (continued)
The amount included in the statement of fi nancial position arising from the CSIR’s obligation in respect of post-retirement
medical benefi ts is as follows:
Present value of obligations 10 142 9 875 10 142 9 875
Net liability on statement of fi nancial position 10 142 9 875 10 142 9 875
Amounts recognised in the statement of comprehensive income in respect of the scheme are as follows:
Interest cost 860 709 860 709
Actuarial loss recognised during the year 49 304 49 304
909 1 013 909 1 013
Movement in the net liability recognised in the statement of fi nancial position is as follows:
Net liability at the beginning of the year 9 875 8 862 9 875 8 862
Movement for the year 267 1 013 267 1 013
Net expense recognised in the statement of
comprehensive income 909 1 013 909 1 013
Settlements (642) - (642) -
Net liability at the end of the year 10 142 9 875 10 142 9 875
Principal actuarial assumptions at the reporting date:
Discount rate at 31 March 9.00% 8.00% 9.00% 8.00%
Medical infl ation costs 4.80% 3.85% 4.80% 3.85%
The above results are sensitive to changes in the assumed future rate of medical infl ation.
The effect of a one percent increase in the assumed future rate of medical infl ation would have the following effects:
Effect on defi ned benefi t obligation 755 749 755 749
The effect of a one percent decrease in the assumed future rate of medical infl ation would have the following effects:
Effect on defi ned benefi t obligation (664) (657) (664) (657)
Historical information 2011 2010 2009 2008 2007
Present value of the defi ned benefi t obligation 10 142 9 875 8 862 8 595 12 751
Defi cit in the plan 10 142 9 875 8 862 8 595 12 751
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