RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 17. Post retirement medical benefit (Continued)

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2021 Restated *

2023

2022 Restated *

2021 Restated *

Net expense recognised in profit or loss Current service cost

7 347

8 964

7 165

7 347

8 964

7 165

Interest cost

44 455

39 106

35 982

44 455

39 106

35 982

Return on plan asset Management fees

(42 915)

(38 237)

(42 377)

(42 915)

(38 237)

(42 377)

456

478

258

456

478

258

9 343

10 311

1 028

9 343

10 311

1 028

Amounts recognised in other comprehensive income Actuarial gain/(loss) on retirement benefit obligation @ 61 387

31 518 (41 233)

61 387

31 518 (41 233)

Actuarial loss on plan asset

(29 410)

(26 496)

(29 641)

(29 410)

(26 496)

(29 641)

Remeasurement gain/(loss) on the net defined medical benefit plan

31 977

5 022 (70 874)

31 977

5 022 (70 874)

@: Actuarial gain on retirement benefit obligation was mainly driven by an increase in discount rate assumption and membership changes.

Key actuarial assumptions used in the actuarial valuations: Discount rate for active members

12,90% 12,50% 10,90% 12,90% 12,50% 10,90%

Discount rate for pensioners

12,90% 12,50% 10,90% 12,90% 12,50% 10,90%

Health care cost inflation

8,45%

9,00%

7,55%

8,45%

9,00% 7,55%

Membership continued at retirement

100,00% 100,00% 100,00% 100,00% 100,00% 100,00%

Expected return on plan asset

12,90% 12,50% 10,90% 12,90% 12,50% 10,90%

Proportion married at retirement

100,00% 100,00% 90,00% 100,00% 100,00% 90,00%

Real discount rate for active members

4,10%

3,21%

3,12%

4,10%

3,21% 3,12%

Spouse age difference

3 years

3 years

3 years

3 years

3 years

3 years

Expected retirement age

65 years

65 years

65 years

65 years

65 years 65 years

Pensioner mortality tables*

PA (90) Ultimate

PA (90) Ultimate

PA (90) Ultimate

PA (90) Ultimate

PA (90) Ultimate

PA (90) Ultimate

* The Group does not have its own mortality tables, the standard mortality table has been adopted.

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