Page 226 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
21 EMPLOYEE BENEFIT LIABILITY (CONTINUED)
(a) Funded obligation (continued)
(v) Expected contribution for the next year (continued)
Mortality Mortality during active service is is assumed assumed to to follow follow that that of of the the standard standard table table known known as as as as A67/70 Ultimate Mortality Mortality after retirement is is assumed assumed to to follow follow that that of of the the standard standard table table known known as as as as a a a a a a a a a a a a a a a a a PA92 rated down by two years Employees are assumed to retire retire retire at at 60 No allowance has been made for for early retirement retirement on the the grounds of ill-health or or or or otherwise or or for late retirements (vi) Settlements and curtailments
There have been no events that would need to be be treated as settlements or curtailments
under IAS 19 (vii) Risks associated with the plans
The Defined Benefit Plans expose the the Group and and the the Company to actuarial risks such as longevity risk risk risk risk risk interest rate risk risk risk risk risk market (investment) risk risk and salary risk risk Longevity risk The liabilities liabilities disclosed are based on on the the the the the mortality mortality tables tables A A A A 67/70 and and PA92/AMAS buyout rate Should the the the the the experience of the the the the the pension plans
be less favourable than the the the standard mortality mortality tables tables the the the liabilities liabilities will increase Interest rate risk If the the the bond interest rate rate decreases the the the liabilities would would be calculated using a a a a a a a a a lower discount rate rate and would would therefore increase Investment risk The present value of of of the the the the the the liabilities of of of the the the the the the plan plan are calculated using a a a a a a a a a a a a a a discount discount rate rate Should the the the the the the returns on on the the the the the the assets of of of the the the the the the plan plan be be lower than the the the discount discount rate a a a a a a a a a a a deficit will arise for funded benefits only Salary risk If salary increases are higher than assumed in in in in our basis the liabilities would increase increase giving rise to actuarial losses Impact
Sensitivity analysis on on defined benefit obligation at at the the end of the the year:
Discount rate 1% increase 1% decrease Salary increase 1% increase 1% decrease THE GROUP
THE COMPANY
Impact
41 206 27 376 (35 767) (23 723)
2020
Rs’000 (116 479)
151 280
61 918
(52 876)
2020
Rs’000 (89 286)
114 807
The sensitivity analyses above have been determined based on on sensibly possible changes of of the the the the discount rate rate or or salary increase rate occurring at at the the the end of of the the the reporting period if all other assumptions
remain unchanged The funded retirement benefit obligations have been based on on the the the the report dated September 28 2020
2020
from Swan Life Ltd calculated for for for the the the the Group and for for for the the the the Company for for for the the the the year ended June 30 2020
226 - UBP INTEGRATED REPORT 2020
2019 Rs’000 (67 670) 85 304
39 367 (33 395)
2019 Rs’000 (55 772) 69 916