Our performance in 2009 - Sappi

2009 annual report
28. Post-employment benefits – other than pensions
The group sponsors two defined benefit post-employment plans that provide certain healthcare 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 this financial year.
The following schedule provides the plans’ funded status and obligations for the group:
South
Africa
2009 2008
North
America Total
South
Africa
157
North
America Total
Change in present value of
defined benefit obligation
Defined benefit obligations at
beginning of year 66 77 143 78 95 173
Current service cost 1 1 2 2 2 4
Interest cost 5 5 10 6 5 11
Actuarial loss (gain) experience 8 (5) 3 (1) (10) (11)
Actuarial loss (gain) assumptions
Gain on curtailment and
2 17 19 (4) (8) (12)
settlements – (1) (1) – – –
Benefits paid (3) (7) (10) (3) (7) (10)
Translation difference 9 – 9 (12) – (12)
Defined benefit obligation
at end of year 88 87 175 66 77 143
Present value of wholly unfunded
obligations 88 87 175 66 77 143
Unrecognised past service credit – (4) (4) – (5) (5)
Recognised post-employment
benefit liability (88) (91) (179) (66) (82) (148)
South
Africa
2009 2008
North
America Total
South
Africa
North
America Total
Reconciliation of pension liability
movement in the balance sheet
Recognised pension plan liability
at beginning of year (66) (82) (148) (78) (101) (179)
Net pension cost for the year (6) (4) (10) (8) (6) (14)
Employer contributions paid 3 7 10 3 7 10
Net actuarial (loss) gain (10) (12) (22) 5 18 23
Translation difference (9) – (9) 12 – 12
Recognised pension plan liability
at end of year (88) (91) (179) (66) (82) (148)
financials