25 POST EMPLOYMENT BENEFIT LIABILITIES GROUP COMPANY Sep-23 MUR m Sep-22 MUR m Sep-23 MUR m Sep-22 MUR m Amount recognised in the Statements of financial position: Pension benefits (a) 63.3 50.8 63.3 50.8 Unfunded pension schemes (b) 23.5 23.6 23.5 23.6 Other retirement benefits (c) 78.7 71.3 76.4 67.2 Other long term employee benefit plan (d) 9.3 9.6 9.3 9.6 174.8 155.3 172.5 151.2 Amount charged / (credited) to profit or loss: Pension benefits (a) 6.0 4.5 6.0 4.5 Unfunded pension schemes (b) 1.0 1.0 1.0 1.0 Other retirement benefits (c) (7.4) 15.4 (6.9) 14.2 Other long term employee benefit plan (d) (0.3) (1.7) (0.3) (1.7) Total included in employee benefit expense (0.7) 19.2 (0.2) 18.0 Amount charged to other comprehensive income: Pension benefits (a) 13.3 14.6 13.3 14.6 Unfunded pension schemes (b) 2.7 1.7 2.7 1.7 Other retirement benefits (c) 15.6 5.7 15.0 4.6 31.6 22.0 31.0 20.9 The plans expose the Group to normal risks associated with all pensions schemes such as investment, interest, longevity and salary risks. Except for unfunded pensions which is subject to only interest and longevity risks. - Investment risk The plan liability is calculated using a discount rate determined by reference to government bond yields; if the return on plan assets is below this rate, it will create a plan deficit and if it is higher, it will create a plan surplus. Currently the Plan has a relatively balanced investment in equity securities, debt instruments and real estate to leverage the return generated by the plan assets. - Interest risk A decrease in the bond interest rate will increase the plan liability; however, this may be partially offset by an increase in the return on the plan’s debt investments and a decrease in inflationary pressures on salary and pension increases. - Longevity risk The plan liability is calculated with reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan liability. - Salary risk The plan liability is calculated with reference to the future projected salaries of plan participants. As such, an increase in the salary of the plan participants above the assumed rate will increase the plan liability whereas an increase below the assumed rate will decrease the liability. (a) Pension benefits The Group operates a final salary defined benefit pension plan for some employees. The assets are held separately from the Group under the control of the Management Committee of Rogers Pension Fund (RPF). The Group contributes to the pension plan in respect of some employees who have a No Worse Off Guarantee (NWOG) so that their benefits would not be worse than what they would have earned under a previous defined benefit plan. EXPLANATORY NOTES 30 SEPTEMBER 2023 176 CIM FINANCE ANNUAL REPORT
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