Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 114
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SASOL LIMITED GROUP
Provisions continued
35 Post-retirement benefit obligations continued
Accounting policies:
The group operates or contributes to defined contribution pension plans and defined benefit pension plans for its employees in
certain of the countries in which it operates. These plans are generally funded through payments to trustee-administered funds
as determined by annual actuarial calculations.
Defined contribution pension plans are plans under which the group pays fixed contributions into a separate legal entity and has
no legal or constructive obligation to pay further amounts. Contributions to defined contribution pension plans are charged to the
income statement as an employee expense in the period in which the related services are rendered by the employee.
The group’s net obligation in respect of defined benefit pension plans is actuarially calculated separately for each plan by
deducting the fair value of plan assets from the gross obligation for post-retirement benefits. The gross obligation is determined
by estimating the future benefit attributable to members in return for services rendered to date.
This future benefit is discounted to determine its present value, using discount rates based on government bonds for South
African obligations, and corporate bonds in Europe and the US, that have maturity dates approximating the terms of the group’s
obligations and which are denominated in the currency in which the benefits are expected to be paid. Independent actuaries
perform this calculation annually using the projected unit credit method.
Defined contribution members employed before 2009 have an option to purchase a defined benefit pension with their member
share. This option gives rise to actuarial risk, and as such, these members are accounted for as part of the defined benefit fund
and are disclosed as such.
Past service costs are charged to the income statement at the earlier of the following dates:
• ■ when the plan amendment or curtailment occurs; and
• ■ when the group recognises related restructuring costs or termination benefits.
Actuarial gains and losses arising from experience adjustments and changes to actuarial assumptions, the return on plan
assets (excluding amounts included in net interest on the defined benefit liability/(asset)) and any changes in the effect of the
asset ceiling (excluding amounts included in net interest on the defined benefit liability/(asset)) are remeasurements that are
recognised in other comprehensive income in the period in which they arise.
Where the plan assets exceed the gross obligation, the asset recognised is limited to the lower of the surplus in the defined
benefit plan and the asset ceiling, determined using a discount rate based on government bonds.
Surpluses and deficits in the various plans are not offset.
The entitlement to healthcare benefits is usually based on the employee remaining in service up to retirement age and the
completion of a minimum service period. The expected costs of these benefits are accrued on a systematic basis over the
expected remaining period of employment, using the accounting methodology described in respect of defined benefit pension
plans above. Independent actuaries perform the calculation of this obligation annually.
Last actuarial valuation – South Africa
Last actuarial valuation – United States of America
Last actuarial valuation – Europe
Full/interim valuation
Valuation method adopted
Healthcare benefits
Pension benefits
31 March 2021
30 June 2021
n/a
Full
Projected unit credit
31 March 2021
30 June 2021
1 April 2021
Full
Projected unit credit
The plans have been assessed by the actuaries and have been found to be in sound financial positions.
Principal actuarial assumptions
Weighted average assumptions used in performing actuarial valuations determined in consultation with independent actuaries.
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Sasol Annual Financial Statements 2021