Page 280 - SAMRC Annual Report 2023-24

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

17 Employee benefit obligations (continued)

Discount rate
Assumed discount rate have a significant effect on the amounts recognised in surplus or deficit. A one percentage point
change in assumed discount rate would have the following effects:

ONE ONE
PERCENTAGE PERCENTAGE
POINT INCREASE POINT DECREASE
31 March 2024
Defined benefit obligation (45,816,000) (55,171,000)
Effect of withdrawal benefit on DBO (1,539,000) (2,929,000)
Total DBO (47,355,000) (58,100,000)

31 March 2023
Defined benefit obligation (70,365,000) (85,343,000)
Effect of withdrawal benefit on DBO (4,455,000) (7,321,000)
Total DBO (74,820,000) (92,664,000)

The methods and assumptions used in preparing the sensitivity analyses and the limitations of those methods are: The
valuation is based on the Projected Unit Credit valuation method. The expected rate of return on plan assets is based on
market expectation, at the beginning of the period, for returns over the entire life of the related obligation.
The discount rate has been determined by determined by reference to market yields at the balance sheet date of the
South African long-term bonds.

Amounts for the current period and previous four years
Assumed assumption have a significant effect on the amounts recognised in surplus or deficit. A one percentage point
change in assumed assumption would have the following effects:

2024 2023 2022 2021 2020
R R R R R
Defined benefit obligation 52,268,000 83,039,000 82,304,000 85,789,000 84,536,000
Plan assets 61,229,000 89,533,000 87,186,000 93,817,000 85,839,000
Surplus in the plan 8,961,000 6,494,000 4,882,000 8,028,000 1,303,000

Expected contributions
The expected contributions to the plan for the next reporting period is R2,855,000 member and entity contributions.

Defined contribution plans
It is the policy of the entity to provide retirement benefits to all its employees.
The entity is under no obligation to cover any unfunded benefits.

31 MARCH 31 MARCH
2024 2023
R R
The amount recognised as an expense for defined contribution plans is 32,454,010 29,715,870

Defined contribution plan: SAMRC Pension Fund
The SAMRC Pension Fund has a Defined Contribution section for members who joined after 1 May 1998.

278 SAMRC ANNUAL REPOR T 2023-24