Our performance in 2009 - Sappi

28. Post-employment benefits – other than pensions continued
South
Africa
2009 annual report
2009 2008
North
America
South
Africa
North
America
Weighted average actuarial assumptions used to
determine periodic post-employment benefit cost: % % % %
Discount rate 9.00 7.60 8.25 6.30
Healthcare cost trend initial rate 7.00 9.00 6.75 9.50
which gradually reduces to an ultimate rate of 7.00 5.00 6.75 5.00
over a period of (years) – 4 – 5
Sensitivity analysis
The discount rate and healthcare cost trend rate can have a significant effect on the amounts reported. The table below
illustrates the effect by changing key assumptions:
1%
increase
in
discount
rate
1%
decrease
in
discount
rate
2009 2008
1%
increase
in healthcare
cost
trend
rate
1%
decrease
in healthcare
cost
trend
rate
1%
increase
in
discount
rate
1%
decrease
in
discount
rate
1%
increase
in healthcare
cost
trend
rate
159
1%
decrease
in healthcare
cost
trend
rate
(Decrease) increase in
defined benefit obligation
(Decrease) increase
in net periodic
post-employment
(17) 20 17 (14) (14) 16 13 (11)
benefit cost (1) 2 2 (1) (1) 1 1 (1)
2009 2008
Post-employment benefits other than pension liabilities are presented
on the balance sheet as follows:
Post-employment benefits other than pension liability (refer to note 21) 172 141
Post-employment benefits other than pension included in other payables (receivables) 7 7
179 148
Actual employer contribution paid for 2009 was US$9 million and expected employer contribution for 2010 is US$11 million.
financials