| 30. |
EMPLOYEE BENEFITS
The Group provides benefits for all its permanent employees through the Telkom Pension Fund and the Telkom Retirement Fund. Membership
to one of the funds is compulsory. In addition, certain retired employees receive medical aid benefits and a telephone rebate. The liabilities for
all of the benefits are actuarially determined in accordance with accounting requirements each year. In addition, statutory funding valuations
for the retirement and pension funds are performed at intervals not exceeding three years.
At 31 March 2013 the Group employed 22,192 (2012: 22,045) employees and the Company employed 21,209 (2012: 20,939) employees.
Actuarial valuations were performed by qualified actuaries to determine the benefit obligation, plan asset and service costs for the pension
and retirement funds for each of the financial periods presented.
The Telkom Pension Fund
The Telkom Pension Fund is a defined benefit fund that was created in terms of the Post Office Amendment Act, 85 of 1991.
The latest actuarial valuation performed at 31 March 2013 indicates that the pension fund is in a surplus position of R100 million. The
recognition of the surplus is limited due to the application of the asset limitation criteria in IAS 19 Employee Benefits. The Telkom Pension Fund
is closed to new members.
The funded status of the Telkom Pension Fund is disclosed below.
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| The Telkom Pension Fund
|
|
|
|
|
|
|
|
|
| The net periodic pension costs includes the
following components: |
|
|
|
|
|
|
|
|
| Interest cost on projected benefit obligations |
22 |
|
20 |
|
22 |
|
20 |
|
| Service cost on projected benefit obligations |
5 |
|
5 |
|
5 |
|
5 |
|
| Expected returns on plan assets |
(35) |
|
(30) |
|
(35) |
|
(30) |
|
| Net periodic pension gain recognised in profit
and loss |
(8) |
|
(5) |
|
(8) |
|
(5) |
|
| The net periodic other comprehensive
income includes the following components: |
|
|
|
|
|
|
|
|
| Actuarial (gain)/loss |
(33) |
|
6 |
|
(33) |
|
6 |
|
| Asset limitation in terms of IAS 19.58(b) |
38 |
|
1 |
|
38 |
|
1 |
|
| Net periodic pension expense recognised in other
comprehensive income |
5 |
|
7 |
|
5 |
|
7 |
|
| Cumulative actuarial loss |
(18) |
|
(51) |
|
(18) |
|
(51) |
|
| Pension fund contributions |
(2) |
|
(2) |
|
(2) |
|
(2) |
|
| The status of the pension plan obligation is
as follows: |
|
|
|
|
|
|
|
|
| At beginning of year |
242 |
|
224 |
|
242 |
|
224 |
|
| Interest cost |
22 |
|
20 |
|
22 |
|
20 |
|
| Current service cost |
5 |
|
5 |
|
5 |
|
5 |
|
| Employee contributions |
2 |
|
2 |
|
2 |
|
2 |
|
| Benefits paid |
(13) |
|
(7) |
|
(13) |
|
(7) |
|
| Curtailment gain |
(4) |
|
– |
|
(4) |
|
– |
|
| Actuarial loss/(gain) |
8 |
|
(2) |
|
8 |
|
(2) |
|
| Benefit obligation at end of year |
262 |
|
242 |
|
262 |
|
242 |
|
| Plan assets at fair value: |
|
|
|
|
|
|
|
|
| At beginning of year |
301 |
|
284 |
|
301 |
|
284 |
|
| Expected return on plan assets |
35 |
|
|
|
35 |
|
|
|
| Benefits paid |
(13) |
|
(7) |
|
(13) |
|
(7) |
|
| Contributions |
2 |
|
2 |
|
2 |
|
2 |
|
| Curtailment loss |
(4) |
|
– |
|
(4) |
|
– |
|
| Actuarial gain/(loss) |
41 |
|
(8) |
|
41 |
|
(8) |
|
| Plan assets at end of year |
362 |
|
301 |
|
362 |
|
301 |
|
| Present value of funded obligation |
262 |
|
242 |
|
262 |
|
242 |
|
| Fair value of plan assets |
(362) |
|
(301) |
|
(362) |
|
(301) |
|
| Fund surplus |
(100) |
|
(59) |
|
(100) |
|
(59) |
|
| Asset limitation in terms of IAS 19.58(b) |
50 |
|
12 |
|
50 |
|
12 |
|
| Recognised net asset (refer to note 17) |
(50) |
|
(47) |
|
(50) |
|
(47) |
|
| Expected return on plan assets |
35 |
|
30 |
|
35 |
|
30 |
|
| Actuarial gain/(loss) on plan assets |
41 |
|
(8) |
|
41 |
|
(8) |
|
| Actual return on plan assets |
76 |
|
22 |
|
76 |
|
22 |
|
| Principal actuarial assumptions were as
follows: |
|
|
|
|
|
|
|
|
| Discount rate (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Yield on government bonds (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Long-term return on equities (%) |
11.6 |
|
12.9 |
|
11.6 |
|
12.9 |
|
| Long-term return on cash (%) |
6.9 |
|
8.4 |
|
6.9 |
|
8.4 |
|
| Expected return on plan assets (%) |
10.8 |
|
11.7 |
|
10.8 |
|
11.7 |
|
| Salary inflation rate (%) |
7.1 |
|
7.4 |
|
7.1 |
|
7.4 |
|
| Pension increase allowance (%) |
5.6 |
|
3.8 |
|
5.6 |
|
3.8 |
|
| The overall long-term expected rate of return on
assets is 10.8%. This is based on the portfolio as
a whole and not the sum of the returns of
individual asset categories. The expected return
takes into account the asset allocation of the
Telkom Pension Fund and expected long-term
return of these assets, of which South African
Equities and Bonds are the largest contributors.
The assumed rates of mortality are determined
by reference to the SA85-90 (Light) ultimate
table, as published by the Actuarial Society of
South Africa, for pre-retirement purposes and the
PA(90) ultimate table, minus one year age rating
as published by the Institute and Faculty of
Actuaries in London and Scotland, for retirement
purposes. |
|
|
|
|
|
|
|
|
| Funding level per statutory actuarial
valuation (%) |
100 |
|
100 |
|
100 |
|
100 |
|
| The number of employees registered under the
Telkom Pension Fund |
95 |
|
100 |
|
95 |
|
100 |
|
| The fund portfolio consists of the following: |
|
|
|
|
|
|
|
|
| Equities (%) |
59 |
|
51 |
|
59 |
|
51 |
|
| Bonds (%) |
9 |
|
14 |
|
9 |
|
14 |
|
| Cash (%) |
7 |
|
10 |
|
7 |
|
10 |
|
| Foreign investments (%) |
25 |
|
25 |
|
25 |
|
25 |
|
| The total expected contributions payable to the
pension fund for the year ending 31 March 2014
are R1.8 million. |
|
|
|
|
|
|
|
|
The Telkom Retirement Fund
The Telkom Retirement Fund was established on 1 July 1995 as a hybrid defined benefit and defined contribution plan. Existing employees
were given the option to either remain in the Telkom Pension Fund or to be transferred to the Telkom Retirement Fund. All pensioners of
the Telkom Pension Fund and employees who retired after 1 July 1995 were transferred to the Telkom Retirement Fund. Upon transfer the
government ceased to guarantee the deficit in the Telkom Retirement Fund. Subsequent to 1 July 1995 further transfers of existing employees
occurred. As from 1 September 2009 all new appointments will belong to the Telkom Retirement Fund but will not be able to retire from the
Telkom Retirement Fund at retirement age. These members would be required to purchase their pensions from an insurance company.
The Telkom Retirement Fund is a defined contribution fund with regards to in-service members. On retirement, an employee is transferred
from the defined contribution plan to a defined benefit plan. Telkom, as a guarantor, is contingently liable for any deficit in the Telkom
Retirement Fund. Moreover, all of the assets in the fund, including any potential excess belong to the participants of the scheme. Telkom is
unable to benefit from the excess in the form of future reduced contributions.
Telkom guarantees any actuarial shortfall of the pensioner pool in the retirement fund. This liability is initially funded through assets of the
retirement fund.
The Telkom Retirement Fund is governed by the Pension Funds Act, 24 of 1956. In terms of section 37A of this Act, the pension benefits
payable to the pensioners cannot be reduced. If therefore the present value of the funded obligation was to exceed the fair value of plan
assets, Telkom would be required to fund the statutory deficit.
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| The funded status of the Telkom Retirement Fund
is disclosed below: |
|
|
|
|
|
|
|
|
| The net periodic retirement costs include the
following components: |
|
|
|
|
|
|
|
|
| Interest cost on projected benefit obligations |
772 |
|
717 |
|
772 |
|
717 |
|
| Expected return on plan assets |
(859) |
|
(800) |
|
(859) |
|
(800) |
|
| Net periodic pension expense recognised in profit
and loss |
(87) |
|
(83) |
|
(87) |
|
(83) |
|
| The net periodic other comprehensive
income includes the following components: |
|
|
|
|
|
|
|
|
| Actuarial loss |
(87) |
|
(83) |
|
(87) |
|
(83) |
|
| Net periodic pension expense recognised in other
comprehensive income |
(87) |
|
(83) |
|
(87) |
|
(83) |
|
| Cumulative actuarial loss |
(1,997) |
|
(1,910) |
|
(1,997) |
|
(1,910) |
|
| Retirement fund contributions |
606 |
|
558 |
|
606 |
|
558 |
|
| Benefit obligation: |
|
|
|
|
|
|
|
|
| At beginning of year |
9,015 |
|
8,654 |
|
9,015 |
|
8,654 |
|
| Interest cost |
772 |
|
717 |
|
772 |
|
717 |
|
| Benefits paid |
(740) |
|
(647) |
|
(740) |
|
(647) |
|
| Liability for new pensioners |
195 |
|
26 |
|
195 |
|
26 |
|
| Curtailment loss |
– |
|
17 |
|
– |
|
17 |
|
| Actuarial loss |
1,462 |
|
248 |
|
1,462 |
|
248 |
|
| Benefit obligation at end of year |
10,704 |
|
9,015 |
|
10,704 |
|
9,015 |
|
| Plan assets at fair value: |
|
|
|
|
|
|
|
|
| At beginning of year |
9,015 |
|
8,654 |
|
9,015 |
|
8,654 |
|
| Expected return on plan assets |
859 |
|
800 |
|
859 |
|
800 |
|
| Benefits paid |
(740) |
|
(647) |
|
(740) |
|
(647) |
|
| Asset backing new pensioners’ liabilities |
195 |
|
26 |
|
195 |
|
26 |
|
| Curtailment gain |
– |
|
17 |
|
– |
|
17 |
|
| Actuarial gain |
1,375 |
|
165 |
|
1,375 |
|
165 |
|
| Plan assets at end of year |
10,704 |
|
9,015 |
|
10,704 |
|
9,015 |
|
| Present value of funded obligation |
10,704 |
|
9,015 |
|
10,704 |
|
9,015 |
|
| Fair value of plan assets |
(10,704) |
|
(9,015) |
|
(10,704) |
|
(9,015) |
|
| Unrecognised net asset |
– |
|
– |
|
– |
|
– |
|
| Expected return on plan assets |
859 |
|
800 |
|
859 |
|
800 |
|
| Actuarial gain on plan assets |
1,375 |
|
165 |
|
1,375 |
|
165 |
|
| Actual return on plan assets |
2,234 |
|
965 |
|
2,234 |
|
965 |
|
| Included in the fair value of plan assets is: |
|
|
|
|
|
|
|
|
| Office buildings occupied by Telkom |
831 |
|
791 |
|
831 |
|
791 |
|
| Telkom shares |
27 |
|
34 |
|
27 |
|
34 |
|
The Telkom Retirement Fund invests its funds in South Africa and internationally. Twelve fund managers invest in South Africa and five of
these managers specialise in trades with bonds on behalf of the Retirement Fund.
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| Principal actuarial assumptions were as
follows: |
|
|
|
|
|
|
|
|
| Discount rate (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Yield on government bonds (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Long-term return on equities (%) |
11.6 |
|
12.9 |
|
11.6 |
|
12.9 |
|
| Long-term return on cash (%) |
6.9 |
|
8.4 |
|
6.9 |
|
8.4 |
|
| Expected return on plan assets (%) |
9.3 |
|
9.9 |
|
9.3 |
|
9.9 |
|
| Pension increase allowance (%) |
5.6 |
|
5.0 |
|
5.6 |
|
5.0 |
|
| The overall long-term expected rate of return on
assets is 9.3%. This is based on the portfolio as a
whole and not the sum of the returns of
individual asset categories. The expected return
takes into account the asset allocation of the
Retirement Fund and expected long-term return
on these assets, of which South African equities,
foreign investments and SA fixed interest bonds
are the largest contributors. The assumed rates of mortality are determined
by reference to the SA85-90 (Light) ultimate
table, as published by the Actuarial Society of
South Africa, for pre-retirement purposes and the
PA(90) ultimate table, minus one year age rating
as published by the Institute and Faculty of
Actuaries in London and Scotland, for retirement
purposes. |
|
|
|
|
|
|
|
|
| Funding level per statutory actuarial
valuation (%) |
100 |
|
100 |
|
100 |
|
100 |
|
| The number of pensioners registered under the
Telkom Retirement Fund |
13,136 |
|
13,379 |
|
13,136 |
|
13,379 |
|
| The number of in-service employees registered
under the Telkom Retirement Fund |
21,257 |
|
20,864 |
|
21,257 |
|
20,864 |
|
| The fund portfolio consists of the following: |
|
|
|
|
|
|
|
|
| Equities (%) |
37 |
|
29 |
|
37 |
|
29 |
|
| Bonds (%) |
63 |
|
68 |
|
63 |
|
68 |
|
| Cash (%) |
– |
|
3 |
|
– |
|
3 |
|
The expected contributions payable to the Retirement Fund for the year ending 31 March 2014 are R51 million.
Medical benefits
Telkom makes certain contributions to medical funds in respect of current and retired employees. The scheme is a defined benefit plan. The
expense in respect of current employees’ medical aid is disclosed in note 6.1. The amounts due in respect of post-retirement medical benefits
to current and retired employees have been actuarially determined and provided for as set out in note 29. Telkom has terminated future postretirement
medical benefits in respect of employees joining after 1 July 2000.
There are three major categories of members entitled to the post-retirement medical aid: pensioners who retired before 1994 (‘Pre-94’);
those who retired after 1994 (‘Post-94’); and the in-service members. The Post-94 and the in-service members’ liability is subject to a Rand
cap, which increases as per Board’s approval.
Eligible employees must be employed by Telkom until retirement age to qualify for the post-retirement medical aid benefit. The most recent
actuarial valuation of the benefit was performed as at 31 March 2013.
Telkom has allocated certain investments to fund this liability as set out in note 16.2. The annuity policy of the Cell Captive investment is the
medical plan asset.
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| Medical aid |
|
|
|
|
|
|
|
|
| Benefit obligation: |
|
|
|
|
|
|
|
|
| At beginning of year |
7,142 |
|
6,775 |
|
7,119 |
|
6,752 |
|
| Interest cost |
622 |
|
569 |
|
621 |
|
568 |
|
| Current service cost |
110 |
|
107 |
|
110 |
|
106 |
|
| Actuarial loss/(gain) |
510 |
|
(17) |
|
510 |
|
(16) |
|
| Curtailment (gain)/loss |
(276) |
|
2 |
|
(276) |
|
2 |
|
| Termination settlement |
(3) |
|
(2) |
|
(3) |
|
(2) |
|
| Benefits paid from plan assets |
(202) |
|
(188) |
|
(202) |
|
(188) |
|
| Contributions paid by Telkom |
(82) |
|
(104) |
|
(81) |
|
(103) |
|
| Benefit obligation at end of year |
7,821 |
|
7,142 |
|
7,798 |
|
7,119 |
|
| Plan assets at fair value: |
|
|
|
|
|
|
|
|
| At beginning of year |
2,233 |
|
2,094 |
|
2,233 |
|
2,094 |
|
| Expected return on plan assets |
241 |
|
208 |
|
241 |
|
208 |
|
| Benefits paid from plan assets |
(202) |
|
(188) |
|
(202) |
|
(188) |
|
| Transfer from sinking fund to annuity policy |
71 |
|
47 |
|
71 |
|
47 |
|
| Actuarial gain |
150 |
|
72 |
|
150 |
|
72 |
|
| Plan assets at end of year |
2,493 |
|
2,233 |
|
2,493 |
|
2,233 |
|
| Present value of funded obligation |
7,821 |
|
7,142 |
|
7,798 |
|
7,119 |
|
| Fair value of plan assets |
(2,493) |
|
(2,233) |
|
(2,493) |
|
(2,233) |
|
| Liability as disclosed in the statement of financial
position (refer to note 29) |
5,328 |
|
4,909 |
|
5,305 |
|
4,886 |
|
| The net periodic other comprehensive
income includes the following components: |
|
|
|
|
|
|
|
|
| Actuarial (loss)/gain |
(360) |
|
89 |
|
(360) |
|
88 |
|
| Net periodic pension expense and income
recognised in other comprehensive income |
(360) |
|
89 |
|
(360) |
|
88 |
|
| Cumulative actuarial loss |
(2,670) |
|
(2,310) |
|
(2,670) |
|
(2,310) |
|
| Plan assets at fair value: |
|
|
|
|
|
|
|
|
| Expected return on plan assets |
241 |
|
208 |
|
241 |
|
208 |
|
| Actuarial gain on plan assets |
150 |
|
72 |
|
150 |
|
72 |
|
| Actual return on plan assets |
391 |
|
280 |
|
391 |
|
280 |
|
| Principal actuarial assumptions were as
follows: |
|
|
|
|
|
|
|
|
| Discount rate (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Expected return on plan assets (%) |
10.4 |
|
11.3 |
|
10.4 |
|
11.3 |
|
| The expected return on plan assets assumption
rate has been derived by considering the actual
asset allocation and the expected long term real
return of each asset class using the actuarial
asset liability model. |
|
|
|
|
|
|
|
|
| Salary inflation rate (%) |
7.1 |
|
7.4 |
|
7.1 |
|
7.4 |
|
| Medical inflation rate (%) |
7.6 |
|
7.9 |
|
7.6 |
|
7.9 |
|
The assumed rates of mortality are determined by reference to the SA85-90 (Light) ultimate table, as published by the Actuarial Society of
South Africa, for pre-retirement purposes and the PA(90) ultimate table, minus one year age rating as published by the Institute and Faculty
of Actuaries in London and Scotland, for retirement purposes.
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| Contractual retirement age |
65 |
|
65 |
|
65 |
|
65 |
|
| Average retirement age |
60 |
|
60 |
|
60 |
|
60 |
|
| Number of members |
9,492 |
|
10,857 |
|
9,492 |
|
10,857 |
|
| Number of pensioners |
8,761 |
|
8,414 |
|
8,761 |
|
8,414 |
|
Group and Company
The valuation results are sensitive to changes in the underlying assumptions. The following table provides an indication of the impact of
changing some of the valuation assumptions above:
The Trudon (Pty) Ltd benefit obligation of R20 million has been excluded from the sensitivity analysis below.
2013
|
Current assumption
Rm |
|
Decrease
Rm |
|
Increase
Rm |
|
| Medical cost inflation rate |
7.6% |
|
–1% |
|
+1% |
|
| Benefit obligation |
7,798 |
|
(1,108) |
|
1,406 |
|
| Percentage change |
|
|
(14.2%) |
|
18.0% |
|
| Service cost and interest cost 2013/2014 |
731 |
|
(110) |
|
143 |
|
| Percentage change |
|
|
(15.0%) |
|
19.6% |
|
| Discount rate |
8.9% |
|
–1% |
|
+1% |
|
| Benefit obligation |
7,798 |
|
1,456 |
|
(1,126) |
|
| Percentage change |
|
|
18.7% |
|
(14.4%) |
|
| Service cost and interest cost 2013/2014 |
731 |
|
55 |
|
(46) |
|
| Percentage change |
|
|
7.5% |
|
(6.3%) |
|
| Post-retirement mortality rate |
PA(90)
Ultimate-1 |
|
–10% |
|
+10% |
|
| Benefit obligation |
7,798 |
|
44 |
|
(43) |
|
| Percentage change |
|
|
0.6% |
|
(0.6%) |
|
| Service cost and interest cost 2013/2014 |
731 |
|
6 |
|
(5) |
|
| Percentage change |
|
|
0.8% |
|
(0.7%) |
|
2012
|
Current assumption
Rm |
|
Decrease
Rm |
|
Increase
Rm |
|
| Medical cost inflation rate |
7,9% |
|
–1% |
|
+1% |
|
| Benefit obligation |
7,119 |
|
(982) |
|
1,234 |
|
| Percentage change |
|
|
(13.8%) |
|
17.3% |
|
| Service cost and interest cost 2012/2013 |
674 |
|
(111) |
|
141 |
|
| Percentage change |
|
|
(16.5%) |
|
20.9% |
|
| Discount rate |
8.9% |
|
–1% |
|
+1% |
|
| Benefit obligation |
7,119 |
|
1,251 |
|
(979) |
|
| Percentage change |
|
|
17.6% |
|
(13.8%) |
|
| Service cost and interest cost 2012/2013 |
674 |
|
60 |
|
(49) |
|
| Percentage change |
|
|
8.9% |
|
(7.3%) |
|
| Post-retirement mortality rate |
PA(90)
Ultimate-1 |
|
–10% |
|
+10% |
|
| Benefit obligation |
7,119 |
|
40 |
|
(39) |
|
| Percentage change |
|
|
0.6% |
|
(0.5%) |
|
| Service cost and interest cost 2012/2013 |
674 |
|
6 |
|
(5) |
|
| Percentage change |
|
|
0.9% |
|
(0.7%) |
|
| |
Group |
|
Company |
|
| |
2013
Rm |
|
2012
Rm |
|
2013
Rm |
|
2012
Rm |
|
| The fund portfolio consists of the following: |
|
|
|
|
|
|
|
|
| Equities (%) |
53 |
|
48 |
|
53 |
|
48 |
|
| Bonds (%) |
9 |
|
17 |
|
9 |
|
17 |
|
| Cash and money market investments (%) |
10 |
|
12 |
|
10 |
|
12 |
|
| Foreign investments (%) |
28 |
|
23 |
|
28 |
|
23 |
|
| Telephone rebates |
|
|
|
|
|
|
|
|
| Telkom provides telephone rebates to its
pensioners who joined prior to 1 August 2009.
The most recent actuarial valuation was
performed as at 31 March 2013. Eligible
employees must be employed by Telkom until
retirement age to qualify for the telephone
rebates. The scheme is a defined benefit plan.
The status of the telephone rebate liability is
disclosed below: |
|
|
|
|
|
|
|
|
| Benefit obligation |
521 |
|
558 |
|
521 |
|
558 |
|
| Unrecognised past service cost |
(5) |
|
(7) |
|
(5) |
|
(7) |
|
| Current service cost |
6 |
|
7 |
|
6 |
|
7 |
|
| Interest cost |
44 |
|
47 |
|
44 |
|
47 |
|
| Actuarial gain |
(129) |
|
(66) |
|
(129) |
|
(66) |
|
| Past service cost |
2 |
|
2 |
|
2 |
|
2 |
|
| Curtailment loss |
6 |
|
– |
|
6 |
|
– |
|
| Benefits paid |
(25) |
|
(25) |
|
(25) |
|
(25) |
|
| Liability as disclosed in the statement of financial position (refer to note 29) |
420 |
|
516 |
|
420 |
|
516 |
|
| The net periodic other comprehensive income includes the following components: |
|
|
|
|
|
|
|
|
| Actuarial gain |
129 |
|
66 |
|
129 |
|
66 |
|
| Net periodic pension income recognised in other comprehensive income |
129 |
|
66 |
|
129 |
|
66 |
|
| Cumulative actuarial gain/(loss) |
32 |
|
(97) |
|
32 |
|
(97) |
|
| Principal actuarial assumptions were as follows: |
|
|
|
|
|
|
|
|
| Discount rate (%) |
7.6 |
|
8.9 |
|
7.6 |
|
8.9 |
|
| Rebate inflation rate (%) |
– |
|
3.4 |
|
– |
|
3.4 |
|
| Contractual retirement age |
65 |
|
65 |
|
65 |
|
65 |
|
| Average retirement age |
60 |
|
60 |
|
60 |
|
60 |
|
| The assumed rates of mortality are determined
by reference to the standard published mortality
table PA(90) ultimate standard tables, as
published by the Institute and Faculty of
Actuaries in London and Scotland, rated down
one year to value the pensioners. |
|
|
|
|
|
|
|
|
| Number of members |
14,447 |
|
15,294 |
|
14,447 |
|
15,294 |
|
| Number of pensioners |
10,090 |
|
10,863 |
|
10,090 |
|
10,863 |
|
The amounts for the current and previous four years are as follows:
| Group |
2009
Rm |
|
2010
Rm |
|
2011
Rm |
|
2012
Rm |
|
2013
Rm |
|
| Telkom Pension Fund |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(199) |
|
(219) |
|
(224) |
|
(242) |
|
(262) |
|
| Plan assets |
247 |
|
294 |
|
284 |
|
301 |
|
362 |
|
| Surplus |
48 |
|
75 |
|
60 |
|
59 |
|
100 |
|
| Asset limitation |
– |
|
(25) |
|
(10) |
|
(12) |
|
(50) |
|
| Recognised net asset |
48 |
|
50 |
|
50 |
|
47 |
|
50 |
|
| Experience adjustment on assets |
(67) |
|
20 |
|
(8) |
|
(8) |
|
41 |
|
| Experience adjustment on liabilities |
1 |
|
5 |
|
(10) |
|
9 |
|
(2) |
|
| Telkom Retirement Fund |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(6,704) |
|
(7,207) |
|
(8,654) |
|
(9,015) |
|
(10,703) |
|
| Plan assets |
6,675 |
|
7,776 |
|
8,654 |
|
9,015 |
|
10,703 |
|
| Unrecognised net (liability)/asset |
(29) |
|
569 |
|
– |
|
– |
|
– |
|
| Experience adjustment on assets |
(1,735) |
|
856 |
|
41 |
|
165 |
|
1,375 |
|
| Experience adjustment on liabilities |
(645) |
|
109 |
|
(199) |
|
(285) |
|
(48) |
|
| Medical benefits |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(5,410) |
|
(6,371) |
|
(6,775) |
|
(7,142) |
|
(7,821) |
|
| Plan assets |
1,618 |
|
2,062 |
|
2,094 |
|
2,233 |
|
2,493 |
|
| Liability recognised |
(3,792) |
|
(4,309) |
|
(4,681) |
|
(4,909) |
|
(5,328) |
|
| Experience adjustment on assets |
(393) |
|
(433) |
|
(32) |
|
72 |
|
150 |
|
| Experience adjustment on liabilities |
246 |
|
266 |
|
11 |
|
18 |
|
303 |
|
| Telephone rebates |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation liability |
(471) |
|
(527) |
|
(551) |
|
(516) |
|
(420) |
|
| Experience adjustment on liabilities |
2 |
|
(15) |
|
(13) |
|
12 |
|
4 |
|
| Company |
2009
Rm |
|
2010
Rm |
|
2011
Rm |
|
2012
Rm |
|
2013
Rm |
|
| Telkom Pension Fund |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(199) |
|
(219) |
|
(224) |
|
(242) |
|
(262) |
|
| Plan assets |
247 |
|
294 |
|
284 |
|
301 |
|
362 |
|
| Surplus |
48 |
|
75 |
|
60 |
|
59 |
|
100 |
|
| Asset limitation |
– |
|
(25) |
|
(10) |
|
(12) |
|
(50) |
|
| Recognised net asset |
48 |
|
50 |
|
50 |
|
47 |
|
50 |
|
| Experience adjustment on assets |
(67) |
|
20 |
|
(8) |
|
(8) |
|
41 |
|
| Experience adjustment on liabilities |
1 |
|
5 |
|
(10) |
|
9 |
|
(2) |
|
| Telkom Retirement Fund |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(6,704) |
|
(7,207) |
|
(8,654) |
|
(9,015) |
|
(10,704) |
|
| Plan assets |
6,675 |
|
7,776 |
|
8,654 |
|
9,015 |
|
10,704 |
|
| Unrecognised net (liability)/asset |
(29) |
|
569 |
|
– |
|
– |
|
– |
|
| Experience adjustment on assets |
(1,735) |
|
856 |
|
41 |
|
165 |
|
1,375 |
|
| Experience adjustment on liabilities |
(645) |
|
109 |
|
(199) |
|
(285) |
|
(48) |
|
| Medical benefits |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation |
(5,389) |
|
(6,350) |
|
(6,752) |
|
(7,119) |
|
(7,798) |
|
| Plan assets |
1,618 |
|
2,062 |
|
2,094 |
|
2,233 |
|
2,493 |
|
| Liability recognised |
(3,771) |
|
(4,288) |
|
(4,658) |
|
(4,886) |
|
(5,305) |
|
| Experience adjustment on assets |
(393) |
|
298 |
|
(32) |
|
72 |
|
150 |
|
| Experience adjustment on liabilities |
246 |
|
266 |
|
11 |
|
18 |
|
303 |
|
| Telephone rebates |
|
|
|
|
|
|
|
|
|
|
| Defined benefit obligation liability |
(471) |
|
(527) |
|
(551) |
|
(516) |
|
(420) |
|
| Experience adjustment on liabilities |
2 |
|
(15) |
|
(13) |
|
12 |
|
4 |
|
|
