Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 25. POST- EMPLOYMENT BENEFIT 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 2021 are MUR5.1m. - The weighted average duration of the defined benefit obligations is 5 years. GROUP Sep-20 Sep-19 (vi) Principal actuarial assumptions at end of year: Discount rate 2.7% 5.9% Future pension increases 2.0% 2.0% 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 GROUP Sep-20 MUR m Sep-19 MUR m (i) Amounts recognised in the Statements of Financial Position are as follows: Present value of unfunded obligation 62.0 55.6 Liability in the Statements of Financial Position 62.0 55.6 (ii) Amounts recognised in profit or loss and other comprehensive income are as follows: Service cost: Current service cost 4.9 4.8 Past service cost - (0.2) Net interest on net defined benefit liability 3.2 2.9 Components of amount recognised in profit or loss 8.1 7.5 Liability experience loss 1.6 3.7 Liability loss due to change in demographic assumptions (22.9) - Liability gain/(loss) due to change in financial assumptions 20.7 (2.3) Components of amount recognised in other comprehensive income (0.6) 1.4 Other post retirement benefits comprise mainly of gratuity on retirement payable under the Workers’ Rights Act 2019 (2018-Employment Rights Act 2008) and other benefits. Other retirement benefits comprise full and residual retirement gratuities. (c) Other retirement benefits 137