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Notes to the financial statements
continued
for the year ended 30 September 2015
168
Tiger Brands Limited integrated annual report
2015
GROUP
2015
2014
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
6,90
6,70
– Nestlé Pension Fund
9,70
9,30
– ICS Pension Fund
6,90
6,70
Future salary increases
8,20
7,90
Post-retirement discount rate
– Tiger Brands Defined Benefit Pension Fund
3,00
3,00
– Nestlé Pension Fund
3,73
3,58
Future pension increases
– Nestlé Pension Fund
5,76
5,52
(R’million)
Reconciliation of the defined benefit obligation:
Defined benefit obligation at the beginning of the year
(319,2)
(319,5)
Current service cost
(3,6)
(4,7)
Member contributions
(1,0)
(1,3)
Interest cost
(26,2)
(29,3)
Actuarial gain/(loss)
8,8
(5,4)
Benefits paid
29,1
40,7
Settlement cost
6,1
–
Risk premiums (group life and permanent health)
0,3
0,3
Defined benefit obligation at the end of the year
(305,7)
(319,2)
Reconciliation of fair value of plan assets
Assets at fair market value at the beginning of the year
423,0
428,9
Interest on plan assets
33,9
39,6
Contributions
2,8
3,5
Risk premiums (group life and permanent health)
(0,3)
(0,3)
Benefits paid
(26,9)
(40,7)
Settlement cost
(5,0)
–
Actuarial loss
(1,9)
(8,0)
Assets at fair market value at the end of the year
425,6
423,0
Reconciliation of asset ceiling
Asset ceiling at the beginning of the year
–
–
Unrecognised due to paragraph 64 limit
(21,4)
–
Asset ceiling at the end of the year
(21,4)
–
Asset balance at the end of the year
98,5
103,8