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344 NEDBANK GROUP Limited INTEGRATED REPORT 201035 LONG-TERM EMPLOYEE BENEFITSThe group has a number of defined-benefit and defined-contribution plans in terms of which it provides pension, postretirement medicalaid and long-term disability benefits to employees and their dependants on retirement, death or disability. All eligible employees and formeremployees are members of trustee-administered or underwritten schemes within the group, financed by company and employee contributions.All SA retirement plans are governed by the Pension Funds Act of 1956. The defined-benefit funds are actuarially valued using the projectedunitcredit method. Any deficits are funded to ensure the ongoing financial soundness of the funds.The benefits provided by the defined-benefit schemes are based on years of membership and/or salary levels. These benefits are provided fromcontributions by employees, the group, and income from the assets of these schemes. The benefits provided by the defined-contribution schemesare determined by the accumulated contributions and investment earnings.At the dates of the latest valuations the defined-benefit plans were in a sound financial position in terms of section 16 of the Pensions Funds Actof 1956. During 1998 active members in the Nedgroup Pension Fund (defined-benefit) were granted a further option to transfer to one of thedefined-contribution funds and approximately three-quarters of the then valuation surplus was allocated to members and pensioners.The funds that constitute the assets and liabilities that the group has recognised in the statement of financial position in respect of its definedbenefitplans are listed below. The latest actuarial valuations were performed at 31 December 2010.Postemployment benefitsDefined-benefit pension and provident funds• Nedgroup Pension Fund (including the Optiplus policy).• BoE Funds, which consist of NBS Group Pension Fund, BoE Limited Pension Fund (1969), Pension Fund of BoE Bank: Business Division.• Nedbank UK Pension Fund.• Other funds, consisting of of Nedbank Swaziland Limited Pension Fund and Nedbank Lesotho Pension Fund.Defined-contribution pension and provident funds• Fairbairn Funds, consisting of of Fairbairn Private Bank Pension and Provident Funds.Defined-benefit medical aid schemes• Nedgroup Medical Aid Scheme for Nedbank employees and pensioners.• Nedgroup Medical Aid Scheme for past BoE employees and pensioners.• Nedbank Namibia Medical Aid Fund.Other long-term employee benefitsDisability fund• Nedbank Group Disability Fund [including the Old Mutual Alternative Risk Transfer Fund (OMART) policy].Insurance policies held with related parties• Optiplus (Nedgroup Pension Fund) and OMART (Nedbank Group Disability Fund) are insurance policies, the proceeds of which can only beused to pay or fund the employee benefits under the specific funds. However, these policies are not qualifying insurance policies in terms ofIAS 19 Employee Benefits, since they are held with related parties. These rights to reimbursement are therefore recognised as separate assetsand in all other respects are treated in the same way as other plan assets.