Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

21. Post retirement medical benefit (continued)

Longevity risk:

The risk that pensioners will live longer than expected and thus their healthcare benefit is payable for longer than expected.

Open-ended, long-term liability risk:

The risk that the liability may be volatile in the future and uncertain.

Future changes in legislation risk:

The risk that changes to legislation with respect to the post-employment healthcare liability may increase the liability for Rand Water.

Future changes in the tax environment:

The risk that changes in tax legislation governing employee benefits may increase the liability for Rand Water.

Perceived inequality by non-eligible employees risk:

The risk of dissatisfaction of employees who are not eligible for a post-employment healthcare subsidy.

Administration risk:

Administration of this liability poses a burden to Rand Water.

Enforcement of eligibility criteria and rules risk:

The risk that eligibility criteria and rules are not strictly or consistently enforced.

Investment risk:

The risk that the return earned by the plan assets is lower than expected and thus the plan assets are insufficient.

Market risk:

The risk that the market value of the plan assets will decrease due to unexpected movements in market factors.

No other post-retirement benefits are provided to the employees.

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Rand Water | Integrated Annual Report 2025