2019 Integrated Report

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2019 142 | PPS INTEGRATED REPORT 2019 18. RETIREMENT BENEFIT OBLIGATIONS Group 2019 2018 R’000 R’000 Statement of Financial Position obligations for: – post-retirement medical benefits 5 706 5 587 5 706 5 587 Statement of profit or loss and comprehensive income charge for (note 27): – post-retirement medical benefits 746 (664) 746 (664) Post-employment medical benefits The Group provides for the unfunded post-retirement healthcare benefits of those employees and a small number of retirees employed before 4 October 1999, as well as their spouses and dependants. The entitlement to post-retirement healthcare benefits is based on an employee remaining in service up to retirement and completion of a minimum service period. The amounts recognised in the Statement of Financial Position were determined as follows: Group 2019 2018 R’000 R’000 Present value of unfunded obligations 5 706 5 587 Liability in the Statement of Financial Position 5 706 5 587 The latest actuarial valuation of the Group’s post-employment benefits, carried out at 31 December 2019 indicated a present value of projected future benefits amounting to R5.7 million (2018: R5.6 million). The movement in the post-employment medical benefit obligation was as follows: Group 2019 2018 R’000 R’000 Post-employment medical benefit obligations at beginning of the year 5 587 6 818 Interest cost 493 582 Benefits paid (627) (567) Actuarial loss/(gain) recognised during the year 253 (1 246) Post-employment medical benefit obligations at end of the year 5 706 5 587