215 / 276
213
Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
35 Post-retirement medical aid obligations
The company and its subsidiaries operate post-employment medical benefit schemes that cover certain of
their employees and retirees. This practice has since been stopped for new employees. The liabilities are
valued annually using the projected unit credit method. The latest actuarial valuation was performed on
30 September 2014.
GROUP
(R’million)
2014
Restated*
2013
Balance at the end of the year
Present value of obligations
(626,4)
(580,9)
Liability at reporting date
(626,4)
(580,9)
Movement in the liability recognised in the statement of financial position
Balance at the beginning of the year
(580,9)
(583,6)
Contributions paid
36,2
34,2
Other expenses included in staff costs
(81,7)
(31,5)
Current service cost
(2,6)
(3,1)
Interest cost
(50,6)
(45,3)
Actuarial (losses)/gains recognised
(28,5)
16,9
Balance at the end of the year
(626,4)
(580,9)
*
The amounts have been restated due to the adoption of IAS 19R.
The employer’s estimate of contributions expected to be paid for the 2015 financial year is R38,6 million
(2014: R36,2 million).
GROUP
(%)
2014
Restated*
2013
The principal actuarial assumptions used for accounting purposes were:
Discount rate
8,50
9,00
Medical inflation
7,80
7,80
Future salary increases
7,80
7,80
Post-retirement mortality tables
PA(90)
ultimate
rated
down
2 years
plus 1%
improve-
ment pa
from 2006
PA(90)
ultimate
rated
down
2 years
plus 1%
improve-
ment pa
from 2006