Page 330 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
(CONTINUED)

18. Employee benefit obligations

Defined benefit plans
Post retirement medical aid plan
The SAMRC took a compulsory insurance policy in order to fund post retirement medical obligations of its ex-
employees. Given the nature of the policy, it is appropriate to treat this as a plan asset. Certain assets have been
allocated specifically for the purpose of covering the post retirement medical aid defined benefit liability. The
defined benefit medical liability has been recognised and accounted for under the requirements of GRAP 25 –
Employee Benefits. The assets have been accounted for in terms of the requirements of the accounting standards
to which they relate and not in terms of GRAP 25 because the plan is not registered. The Post retirement medical
aid plan is valued annually in compliance with GRAP 25. The relevant assets are included in the statement of
financial position. The valuation is based on an employer subsidy of a percentage of members’ post-employment
medical aid contributions, subject to the benchmark maximum. SAMRC considers paying the annual contribution
in order to eliminate the liability. There are no in service members.
The risks to which the plan exposes the entity are the market performance of the plan in order to meet the liability.
The entity will investigate options available to eliminate the net liability as far as possible.

The basis on which the discount rate has been determined is: by reference to market yields at the balance sheet
date of South African long-term bonds.

Pension funds
The SAMRC personnel are members of the following pension funds:
• State Pension Fund (Associated institutions – AIPF) (Act No. 51 of 1963)
• State Pension fund for temporary employees (Act No. 75 of 1979)
• SAMRC Pension fund (since January 1994)
(a) The first two funds were established by Law and are regulated by the respective Acts.
(b) The last-named fund is regulated by the Pension Fund Act and is managed by an independent Board of
Trustees. The SAMRC Pension fund was actuarially valued at 1 April 2023. Next statutory valuation for the
fund is 1 April 2026.
(c) The first two funds offer defined benefits to staff. With regard to the SAMRC Pension fund, some members
are on a defined benefit scheme, while the remainder are on a defined contribution scheme. The Fund
operated a closed defined benefit section for members who joined prior to 1 July 1998.
The SAMRC Pension Fund is valued annually in compliance with GRAP 25.

328 SA M R C A N N U A L R EP O R T 2 0 2 5 / 2 0 2 6