Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

21. Post retirement medical benefit

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Non-current asset Non-current liability

401 783 (334 765) 67 018 (67 018)

377 576 (330 371) 47 205 (47 205)

401 783 (334 765) 67 018 (67 018)

377 576 (330 371) 47 205 (47 205)

Defined benefit asset before the asset ceiling

Asset ceiling

Net defined benefit asset/(liability)

-

-

-

-

Reconciliation of the retirement benefit liability Balance at 1 July

(330 371) (39 578)

(335 758) (41 953)

(330 371) (39 578)

(335 758) (41 953)

Interest cost

Current service costs

(5 351) 21 339 19 196

(6 386) 21 081 32 645

(5 351) 21 339 19 196

(6 386) 21 081 32 645

Benefits paid Actuarial gain

Balance at 30 June

(334 765)

(330 371)

(334 765)

(330 371)

Reconciliation of the fair value of plan assets Balance at 1 July

330 371 45 535 (21 339)

335 758 45 517 (21 081)

330 371 45 535 (21 339)

335 758 45 517 (21 081)

Return on plan asset

Benefits paid

Management fees

(331)

(240)

(331)

(240)

Actuarial loss

(19 471) 334 765

(29 583) 330 371

(19 471) 334 765

(29 583) 330 371

Balance at 30 June

This is a Post-Retirement Medical Benefit Obligation that arises due to Rand Water’s commitment to continue to fund a portion (two-thirds) of the qualifying employees’ contributions to the Rand Water Medical Scheme after retirement. These are member employees that were employed by Rand Water prior to 1 January 2002 and were on option A of the Rand Water Medical Scheme. The scheme is a closed scheme. The Group’s planned assets amounted to R334.8 million (2024: R330.4 million) relating to the post-retirement medical benefit after applying the asset ceiling. This is a matching asset as defined under IAS 19 to ensure the obligation is funded. Actuarial valuation is conducted on a bi-annually basis by independent actuaries using the projected credit unit method to value the present value of the defined benefit obligation.

Analysis of movements in the statement of financial position and statement of comprehensive income:

274

Rand Water | Integrated Annual Report 2025