Page 144 - 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) 9.2 Post-retirement medical aid benefits (continued)
Movement in the defined benefit obligation is as follows: At beginning of year
Current service cost
Interest cost
Actuarial (gain)/loss Benefits paid
At end of year
The Actuarial (gain)/loss consists of the following:
Basis Changes
Subsidy Changes
Changes to membership profile Total
The amounts recognised in the consolidated income statement are as follows:
Current service cost Interest cost
Total, included in personnel (staff costs)
The amounts recognised in other comprehensive income are as follows:
Net actuarial gain recognised during the year The principal assumptions used are as follows:
Discount rate
Medical inflation
Average retirement age
Net discount rate – health care cost inflation
2020 2019 R’000 R’000
143 033 1 647 12 918 (9 348) (9 062) 139 188
(8 150) (714) (484) (9 348)
1 647 12 918
14 565
(9 348)
9.31%
5.77% 63 years 3.35%
155 329 1 861 14 421 (19 738) (8 840) 143 033
(14 949) 5 081 (9 870) (19 738)
1 861 14 421
16 282
(19 738)
9.32%
6.34% 63 years 2.8%
The sensitivity analysis shows how the defined benefit obligation would have been affected by changes in actuarial assumptions. The sensitivities may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation recognised in the Statement of Financial Position. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.