Entire Annual Report - Anglo American Platinum

38. Employee benefits (continued)Defined benefit planThe MRR Pension Fund requires actuarial valuation every three years by an independent firm of consulting actuaries. The fundwas last valued at 31 December 1997. The valuation at 31 December 2000 is in progress.The provisional actuarial assessment at 31 December 2000 determined the actuarial liability for all pensioners and members andthe actuarial value of the assets of the fund using the projected unit credit method. The following principal actuarialassumptions were applied:31 December 31 December2000 1999ACTUARIAL ASSUMPTIONSAnnual discount rate 11,8% 15,0%Expected return on plan investments (per annum) 13,0% 15,0%Salary escalation rate (per annum) 9,3% 12,5%Annual pension increases 7,5% 9,5%MEMBERSHIPMembership of the MRR Pension Fund was as follows:Active members 41 42Deferred members 31 35Pensioners 205 232FUND STATUS Rm RmThe provisional funded status of the MRR Pension Fund was as follows:Fair value of plan assets 153,0 156,6Domestic equities 87,4 87,8Foreign equities 31,1 27,7Domestic fixed interest 16,3 19,4Foreign fixed interest 7,6 2,2Property 2,1 3,1Cash 8,5 16,4Present value of funded obligation 115,6 108,4Net asset 37,4 48,2Cumulative unrecognised actuarial gains 4,0 2,4Cumulative unrecognised transitional asset (32,0) (37,0)Cumulative pre-paid pension cost 9,4 13,6As a result of the ongoing debate as to the ownership of a surplus in South Africanpension funds, the surplus in the fund has not been recognised as an asset.PENSION COSTCurrent service cost 1,3 1,2Interest cost 16,0 14,7Expected returns on plan assets (23,1) (17,3)Pension cost (5,8) (1,4)Employer contribution 0,8 0,8171