| |
|
|
|
GROUP |
|
COMPANY |
|
| |
|
|
|
2005 |
|
2004 |
|
2005 |
|
2004 |
|
| |
|
|
|
Rm |
|
Rm |
|
Rm |
|
Rm |
|
10.
|
PENSION FUND SURPLUS
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the beginning of year |
|
|
– |
|
– |
|
– |
|
– |
|
|
Surplus allocated to employer |
|
|
70,4 |
|
– |
|
– |
|
– |
|
|
Utilised to reduce post-employment medical aid liability |
|
|
(19,8) |
|
– |
|
– |
|
– |
|
|
Balance at the end of the year |
|
|
50,6 |
|
– |
|
– |
|
– |
|
|
Less: current portion |
|
|
(5,6) |
|
– |
|
– |
|
– |
|
|
Non-current portion |
|
|
45,0 |
|
– |
|
– |
|
– |
|
|
During September 2005 approval was obtained from the Financial Services Board to allocate the pension fund surplus of the Feltex Retirement Fund (a pension fund as defined) on a 60/40 basis to the employer and employees. The surplus apportionment was done on condition that the employer surplus account be utilised to settle the post retirement medical aid liability of all qualifying members. In terms of legislation, control over the employer surplus lies with the employer trustees and would be used as a contribution holiday. After settling the post retirement medical aid liability for qualifying and former members, the liability pertaining to Feltex Retirement Fund members will be used for a contribution holiday to all qualifying members. The contribution holiday amounts to R5.6m per annum. |
