30. Post-retirement obligations
 
  2018
R'000 		    2017
R'000		  
Post-retirement assets          
    Defined benefit pension surplus  (224 577)       (202 886)   
Post-retirement obligations                
    Post-retirement medical aid obligations  76 943        77 197    
   (147 634)       (125 689)   
Pension and provident funds                
The Group provides retirement benefits for its permanent employees through pension funds with defined benefit and defined contribution categories and defined contribution provident funds or appropriate industry funds.                
There are also a number of small funds within various employers of the Group. All funds are administered independently of the Group and are subject to the relevant pension fund legislation.                
The Group operates a defined benefit fund through The Bidvest South Africa Pension Fund.                
Employer contributions to defined contribution funds are set out in note 2.                
Summarised details of the defined benefit pension fund                
Defined benefit pension obligations (assets) of the fund                
The Bidvest South Africa Pension Fund  (224 577)       (202 886)   
   (224 577)       (202 886)   
Contributions to the fund                
    Employee contributions  337        384    
Total pension fund asset                
    Fair value of plan assets  623 979        601 441    
    Actuarial present value of defined benefit obligations  (390 780)       (382 356)   
    Net surplus in the plans  233 199        219 085    
    Amounts not recognised due to ceiling adjustments and other limitations  (8 622)       (16 199)   
   224 577        202 886    
Movement in the liability for defined benefit obligations                
    Balance at beginning of year  (382 356)       (420 903)   
    Benefits paid  27 938        49 889    
    Risk premiums and expenses  1 042        1 078    
    Current service costs  (2 403)       (2 920)   
    Interest expense  (36 966)       (39 633)   
    Member contributions  (337)       (384)   
    Actuarial gains  2 302        30 517    
Balance at end of year  (390 780)       (382 356)   
Movement in the plans’ assets                
    Balance at beginning of year  601 441        609 475    
    Contributions paid into the plans  337        384    
    Benefits paid  (27 938)       (49 889)   
    Risk premiums and expenses  (2 052)       (2 051)   
    Interest income  58 366        57 403    
    Return on plan assets in excess of interest income  (6 175)       (13 881)   
    Balance at end of year  623 979        601 441    
The plans’ assets comprise                
    Cash  38 687        53 528    
    Equity securities  460 497        433 638    
    Bills, bonds and securities  94 845        84 202    
    Property  25 583        21 652    
    Other  4 367        8 421    
   623 979        601 441    
Amounts recognised in the income statement                
    Current service costs  2 403        2 920    
    Interest on obligations  36 966        39 633    
    Interest income on plan assets  (58 366)       (57 403)   
    Ceiling adjustments and other limitations  1 604        820    
    Risk premiums and expenses  1 010        973    
   (16 383)       (13 057)   
Amounts recognised in other comprehensive income                
    Return on plan assets in excess of interest income  6 175        13 881    
    Actuarial (gains)/losses  (2 302)       (30 517)   
    Ceiling adjustments and other limitations  (9 181)       6 842    
   (5 308)       (9 794)   
Key actuarial assumptions used in the actuarial valuations:                
    The Bidvest South Africa Pension Fund                
      Number of in-service members 30 June  20        23    
      Number of pensioners 30 June  572        652    
      Discount rate (%) 9,7        9,9    
      Inflation rate (%) 6,2        6,8    
      Salary increase (%) 7,2        7,8    
      Pension increase allowance (%) 4,3        4,8    
    Date of valuation of all funds  30 June 2018        30 June 2017    

Assumptions regarding future mortality are based on published statistics and mortality tables.

Sensitivity analysis

The table below summarises the impact that a reasonably possible change in the respective assumption, occurring at the end of the year, would have, by increasing/(decreasing) the net surplus in the plan, while holding all the other assumptions constant.

  2018
Impact of an
increase in
assumption
R'000 		    2017
Impact of an
increase in
assumption
R'000		  
The Bidvest South Africa Pension Fund          
     Discount rate – 1% 6 366      7 246   
     Pension increase – 1% (12 450)     (14 241)  
     Salary increase – 1% (3 833)     (4 653)  

The sensitivity analyses presented above may not be representative of the actual change in the net surplus in the plans as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

  2018
R'000 		    2017
R'000		  
Post-retirement medical aid obligations          
The Group provides post-retirement medical benefit subsidies to certain retired employees and is responsible for the provision of post-retirement medical benefit subsidies to a limited number of current employees.          
Provision for post-retirement medical aid obligation          
     Opening provision raised against unfunded obligation  77 197        79 128    
     Current service costs (relief) (2 502)       (228)   
     Interest expense  6 632        6 670    
     Benefits paid  (6 772)       (7 889)   
     Actuarial adjustments recognised in other comprehensive income  2 388        (484)   
     Closing provision raised against unfunded obligation  76 943        77 197    
   %        %    
Key actuarial assumptions                
     Discount rate  8,7        9,6    
     Inflation rate (CPI) 5,7        7,0    
     Health care cost inflation  7,7        9,0    
Date of valuation  30 June 2018        30 June 2017    

A change in the medical inflation rates will not have a significant impact on the post-retirement medical aid cost and related obligations.