Page 142 - DUT Annual Report 2020

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DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
9. RETIREMENT BENEFIT OBLIGATIONS (continued)
9.1 Pension obligations - National Tertiary Retirement Fund
(“NTRF”) (continued)
Exposure to actuarial risks (continued)
The actuarial gain consists of the following:
The movement in the fair value of plan assets for the year is as follows:
Beginning of the year
Expected return on plan assets
Employee contribution Benefits paid
Actuarial gain/(loss) End of the year
Actual return on plan assets
2020 2019 R’000 R’000
Change in economic assumptions
Change in demographic assumptions
Experience adjustments
Miscellaneous (1)
(2 872) - 14 821 - (18 341) 11 949
6%
(29 884) - 11 544
103 654 7 483 - (33 287) 1 675 77 482 79 525
79 525 5 778 - (7 006) (815)
9%
Based on present assumptions, the actuary’s best estimate of the University’s expected contribution to the defined contribution plan in 2020 approximates.
9.2 Post-retirement medical aid benefits
DUT offers employees and continuation members the opportunity of belonging to one of several medical schemes, most of which offer a range of options pertaining to levels of cover. Upon retirement, an employee may continue membership of the medical scheme. Upon a member’s death-in-service or death-in-retirement, the surviving dependants may continue membership of the medical scheme.
Former Natal Technikon staff who were employed before 1 January 2000 qualify for a post-employment medical aid subsidy. If they retire or die in service after 1 January 2006, they receive a subsidy of 60% of the contributions payable (for members and their dependants). If they retired before 1 January 2006, they receive a subsidy of between 60% and 100% of the contributions payable, as specified in the data provided. Post-employment subsidies are based on the contributions applicable to the scheme and benefit option selected by a member but are limited to the contributions payable to Discovery’s Classic Comprehensive benefit option. There is no benefit on resignation, retrenchment or retirement before the normal retirement age of 60. Upon a member’s death-in- service or death-after-retirement, the surviving dependants will continue to receive the same subsidy. The fund is a closed scheme and is unfunded. There are 110 in-service members and 175 continuation members.
Post-retirement medical aid benefit obligation by member category:
In service members Continuation members
Total post-retirement medical aid benefit obligation
2020 2019 R’000 R’000
43 784 95 404
139 188
50 204 92 829
143 033