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SUN INTERNATIONAL ANNUAL REPORT ’10
168
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
for the year ended 30 June
18. RETIREMENT BENEFIT INFORMATION
(continued)
The present value of the retirement surplus of the
fund for the current and prior years is as follows:
Present value of funded obligations (249) (237) (281) (237) (205)
Fair value of plan assets 454 396 452 449 340
2010
Rm
Surplus 205 159 171 212 135
Experience adjustment on plan obligations (1%) (5%) 10% 6% 8%
Experience adjustment on plan assets 7% (12%) (7%) 18% 23%
The amounts recognised in the statement of comprehensive income are as follows:
Current service cost 5 8
Interest cost 22 30
Expected return on plan assets (36) (48)
Net actuarial (gain)/loss (36) 35
Effect of asset ceiling 47 (21)
Release of fund obligation on transfer – (6)
Total (refer note 4) 2 (2)
The actual return on plan assets was R69 million (2009: Rnil million).
The principal actuarial assumptions used were as follows:
Discount rate 9.25% 9.25%
Inflation rate 5.75% 5.75%
Expected return on plan assets 9.25% 9.25%
Future salary increases 7.25% 7.25%
Future pension increases 5.75% 5.75%
2009
Rm
The average life expectancy in years of a pensioner retiring at age 60 on the statement of financial
position date and of a member retiring at age 60, 20 years after the statement of financial position
date are as follows:
Male 19.4 19.4
Female 24.2 24.2
Plan assets comprise:
Listed equity investments 61% 67%
Bonds 23% 24%
Other 16% 9%
2008
Rm
Pension plan assets include the company’s ordinary shares with a fair value of R3 million (2009: R4 million).
The expected return on plan assets has been set equal to the discount rate used to value the defined benefit obligations of the fund.
The fund has an amount of approximately R21 million allocated to the employee surplus account that is currently being utilised towards a
contribution holiday, and is expected to result in a holiday of approximately three years.
2010
Rm
2007
Rm
2006
Rm
2009
Rm