Download Annual Report 2006 - Foskor

INCOME NOTES TO STATEMENTTHE FINANCIAL STATEMENTSfor the year ended 31 March 2006COMPANY AND GROUP12 months 9 monthsendedendedMarchMarchR’000 2006 200524.2 Post-employment medical benefitsThe Group operates a post-employment medical benefit scheme, which is heldin an independent trustee-administered fund. The liability is valued every threeyears using the projected unit credit method. The latest full actuarial valuationwas performed on 01 February 2006.The amounts recognised in the balance sheet are as follows:Present value of unfunded obligationsDiscovery Health members 201,739 77,142Thebemed members – 59,233Present value of unfunded obligations 201,739 136,375The amounts recognised in the income statement are as follows:Current service cost 5,571 4,046Interest cost 11,719 6,208Total included in staff costs 17,290 10,254Movement in the liability recognised in the balance sheet:At beginning of year 136,375 110,414Contributions paid (6,376) (4,079)Other expenses 71,740 30,040Balance at the end of the year 201,739 136,375The principal actuarial assumptions used for accounting purposes were:– Expected investment return 7.2% 7.2%– General inflation 4.4% 3.4%– Medical inflation 5.9% 6.4%48