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Notes to the financial statements
continued
for the year ended 30 September 2015
166
Tiger Brands Limited integrated annual report
2015
34 Pension obligations
The company and its subsidiaries contribute to retirement plans that cover all employees. The retirement plans are either
defined benefit plans or defined contribution plans and are funded. The assets of the funds are held in independent
trustee administered funds, administered in terms of the Pension Funds Act 24 of 1956, as amended. In terms of the
Pension Funds Act, certain of the retirement funds are exempt from actuarial valuation. Those funds not exempt from
valuation must, in terms of the Pension Funds Act, be valued at least every three years. For purposes of these
disclosures, and in order to comply with the requirements of IAS 19, valuations have been performed by independent
actuaries, using the projected unit credit method. Where valuations were not possible due to the limited availability of
complete data, roll-forward projections of prior completed actuarial valuations were used, taking account of actual
subsequent experience.
Within the company’s group of subsidiaries, there are a total of 22 retirement plans, three of which are defined benefit
pension funds, five are defined contribution pension funds, two are defined benefit provident funds and eight are
defined contribution provident funds. There are a further four schemes of insurance into which the company and its
subsidiaries contribute. Certain companies within the group sponsor external death, funeral and disability benefit
insurance policies. These insurance costs have been allowed for in the disclosures provided. All of the funds above are
funded with one exception.
The actual return on plan assets for the period 1 October 2014 to 30 September 2015 was R32,1 million
(2014: R31,6 million). This compares with the expected return for the same period of R33,9 million (2014:
R39,6 million).
The value of contributions expected to be paid by group companies for the year ending 30 September 2016 amounts
to R240,4 million (2015 actual: R228,1 million).
As at 30 September 2015, there were no properties occupied by, or other assets used by, group companies which
formed part of the fair value of plan assets (2014: Rnil).
As at 30 September 2015, the percentage of the fair value of plan assets in respect of defined benefit arrangements
invested in Tiger Brands Limited shares amounted to 0% (2014: 0%).
Major categories of plan assets in respect of defined benefit arrangements as at 30 September:
GROUP
(%)
2015
2014
Equities
4,0
5,6
Bonds
38,4
32,8
Cash
53,4
57,3
Property
0,7
0,7
International
3,0
3,1
Other
0,5
0,5
100,0
100,0