Entire Document - Chris Hani District Municipality

The total expense recognised in the Statement of Financial Performance of R9 695556 million (2011: R11,219 million) represents contributions payable to these plansby the municipality at rates specified in the rules of the plans. These contributionshave been expensed.The Retirement Funds have been valued by making use of the Discounted CashFlow method of valuation.DEFINED BENEFIT SCHEMESCape Joint Pension Fund:The scheme is subject to an annual actuarial valuation. The last statutory valuationwas performed as at 30 June 2011.The statutory valuation performed as at 30 June 2011 revealed that the fund had adeficit of R58,9 (30 June 2010: surplus of R0,0) million, with a funding level of 98,1%(30 June 2010: 100,0%). The balance of the Solvency Reserve was R4,9 (30 June2010: R4,9) million. The contribution rate paid by the members (9,00%) and themunicipalities (18,00%) is less than the recommended contribution rate of 32,4%.Chapter 4Government Employees Pension Fund (GEPF):The scheme is subject to an tri-annual actuarial valuation. The last statutory valuationwas performed as at 31 March 2010.The statutory valuation performed as at 31 March 2010 revealed that the fund hada surplus of R0,0 (31 March 2008: R0,0) million, with a funding level of 100,0% (31March 2008: 100,0%). The contribution rate paid by the members (7,50%) and themunicipalities (13,00%) is sufficient to fund the benefits accruing from the fund in thefuture.South African Local Authorities Pension Fund (SALA):The scheme is subject to an tri-annual actuarial valuation. The last statutory valuationwas performed as at 1 July 2010.The statutory valuation performed as at 1 July 2010 revealed that the fund had adeficit of 307,6 (1 July 2009: Deficit of R264,2) million, with a funding level of 96% (1July 2009: 96%). The contribution rate paid by the members (7,50% to 9,00%) andthe municipalities (15,00% to 20,80%) is is sufficient to fund the benefits accruingfrom the fund in the future.Although the fund is less than 100% funded at the valuation date, no additional actionis required at this stage to rectify the situation. If the current employer contributionrate is maintained, the fund is expected to be close to 100% funded at the next triannualvaluation, provided the assumptions are borne out in practice.207