Page 335 - SAMRC AnnualReport 2025-26

F I NAN C IAL I N F O R MA T I O N

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

31 MARCH 31 MARCH
2026 2025
R R
18. Employee benefit obligations (continued)

Key assumptions used
Assumptions used at the reporting date:
General inflation rate 4.11% 5.00%
Discount rate 8.77% 10.80%
Interest income on assets 8.77% 10.80%
Salary increase rate (excluding merit increases) 5.11% 6.00%
Pension increase rate 2.74% 3.33%
Retirement age for staff who joined prior and after 1 May 1998 65 65

The net actuarial loss on the defined benefit obligation is largely as a result of the update in economic valuation
assumptions. Actual salary increases granted over the valuation period for members who were present at both
valuation dates, averaged 6.58% per annum and were higher than the 6.20% per annum anticipated by the
previous valuation assumptions, also adding to the net actuarial loss. This was partially offset both by the release
in the Minimum Individual Reserves and the update in demographic valuation assumptions.
The investment strategy in respect of the defined benefit section of the fund in March 2026 was consistent with
that of the previous valuation. 88.30% of the SAMRC Pension Fund defined benefit portfolio was invested in a
matched portfolio (Liability driven investment strategy) and 11.70% in an unmatched global portfolio (growth
portfolio).

Sensitivity analysis
Inflation rate
Assumed inflation rates will have an impact on the value of the liability. A one percentage point change in
inflation rates would have the following effects:

ONE ONE
PERCENTAGE PERCENTAGE
POINT INCREASE POINT DECREASE
R R
31 March 2026
Defined benefit obligation (DBO) (42,062,150) (35,601,297)
Total DBO (42,062,150) (37,601,297)

ONE ONE
PERCENTAGE PERCENTAGE
POINT INCREASE POINT DECREASE
R R

31 March 2025
Defined benefit obligation (DBO) (49,312,000) (42,239,000)
Total DBO (49,312,000) (42,239,000)
In 2026 there are no effects of withdrawal benefits of the DBO.

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