Notes to the Annual Financial Statement For the year ended 31 March 2010
19. Employee benefits (continued) Pensions and Retirement Funds Defined benefit pension plan (continued) The reason for the change at this valuation date was due to the impending termination of the Fund and the resulting requirements to secure pension rights for all in-service members. In terms of the approved surplus apportionment scheme at 31 January 2004, PetroSA is entitled to receive R2 million of the surplus. No contribution was recognised as an expense during the year as all employees were transferred to the PetroSA Retirement Fund. With effect from 1 October 2007 all in service members were transferred out of the fund to the PetroSA Retirement Fund, and future accrual of benefits under the Pension Fund ceased. Application was made to the Registrar to transfer the accrued benefits of in-service members to the PetroSA Retirement Fund, and to transfer the pensioner liabilities to individual annuity policies with Old Mutual. The Registrar’s approval was granted and all liabilities have been fully transferred. The trustees have appointed a liquidator and they await the Registrar’s approval to this appointment. Defined benefit pension
Group 2010 R’000
Group 2009 R’000
Group 2008 R’000
Company 2010 R’000
Company 2009 R’000
Company 2008 R’000
SFF Present value of the defined benefit obligation Fair value of plan assets Benefit asset/(liability) – non-curent
– 2 912 2 912
– 2 227 2 227
– 17 875 17 875
– – –
– – –
– – –
Opening balance Contributions by members Benefits expense Other
2 227 – 718 (33) 2 912
17 875 – (13 006) (2 642) 2 227
17 123 17 (681) 1 416 17 875
– – – – –
– – – – –
– – – – –
Net benefit expense Current service cost Past service cost Interest cost Net actuarial (gains) and losses Expected return on plan assets Loss/(profit) on curtailment Past services costs Net benefit expense
– – – 4 350 553 – – 4 903
249 – 246 (4 881) 1 713 (204) 1 247 1 630
(21) (32) – (461) 1 943 – – 1 429
– – – – – – – –
– – – – – – – –
– – – – – – – –
At beginning of year Interest cost Current service costs Benefits paid Actuarial gain/loss Additional past service obligation At end of year
3 600 – – – 4 185 (7 785) –
2 598 246 249 1 043 (536) – 3 600
2 720 32 21 (2 312) (461) – –
– – – – – – –
– – – – – – –
– – – – – – –
Movements in the benefit asset during the year
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