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Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
GROUP
2014
Restated*
2013
34 Pension obligations
continued
Actuarial assumptions
The principal actuarial assumptions used for accounting purposes were:
Discount rate
– Tiger Brands Defined Benefit Pension Fund
%
Full yield
curve
%
Full yield
curve
– Tiger Oats Benefit Foundation
6,70
9,90
– Nestlé Pension Fund
9,30
9,90
– ICS Pension Fund
6,70
9,90
Future salary increases
7,90
7,90
Post-retirement discount rate
– Tiger Brands Defined Benefit Pension Fund
3,00
3,00
– Nestlé Pension Fund
3,58
4,15
Future pension increases
– Nestlé Pension Fund
5,52
5,52
(R’million)
Reconciliation of the defined benefit obligation
Defined benefit obligation at the beginning of the year
(319,5)
(350,8)
Current service cost
(4,7)
(3,7)
Member contributions
(1,3)
(1,4)
Interest cost
(29,3)
(27,5)
Actuarial (loss)/gain
(5,4)
19,4
Benefits paid
40,7
44,2
Risk premiums (group life and permanent health)
0,3
0,3
Defined benefit obligation at the end of the year
(319,2)
(319,5)
Reconciliation of fair value of plan assets
Assets at fair market value at the beginning of the year
428,9
428,0
Return on assets
39,6
33,7
Contributions
3,5
4,0
Risk premiums (group life and permanent health)
(0,3)
(0,3)
Benefits paid
(40,7)
(44,2)
Actuarial (loss)/gain
(8,0)
7,7
Assets at fair market value at the end of the year
423,0
428,9
Asset balance at the end of the year
103,8
109,4
*
The amounts have been restated due to the adoption of IAS 19R.