CFSL - Annual report 2018

EXPLANATORY NOTES 30 SEPTEMBER 2018 25. POST EMPLOYMENT BENEFIT ASSETS/LIABILITIES (CONT’D) (b) Unfunded pension schemes (cont’d) (v) Future cash flows - The funding policy is to pay benefits out of the Group’s cashflow as and when due. - Expected employer contributions to post-employment benefit plans for the year ending 30 September 2019 are MUR 6.0m. - The weighted average duration of the defined benefit obligations is 5 years. Sep-18 Sep-17 MUR m MUR m (vi) Principal actuarial assumptions at end of year: Discount rate 6.2% 6.5% Future pension increases 2.0% 2.5% Average retirement age (ARA) 60 60 Average life expectancy for: - Male at ARA 19.5 years 19.5 years - Female at ARA 24.2 years 24.2 years (c) Other retirement benefits Other retirement benefits comprise full and residual retirement gratuities. GROUP Sep-18 Sep-17 MUR m MUR m (i) Amounts recognised in the Statements of Financial Position are as follows: Present value of unfunded obligation 46.7 37.5 Liability in the Statements of Financial Position 46.7 37.5 (ii) Amounts recognised in profit or loss and other comprehensive income are as follows: Service cost: Current service cost 4.6 3.5 Past service cost - (1.0) Net interest on net defined benefit liability 2.4 2.3 Components of amount recognised in profit or loss 7.0 4.8 Liability experience loss/(gain) 0.4 (0.5) Liability loss due to change in demographic assumptions - (0.1) Liability loss due to change in financial assumptions 1.1 - Components of amount recognised in other comprehensive income 1.5 (0.6) 120 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018