AVBOB Financial Statements 2018

112 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (continued) 14. EMPLOYEE BENEFIT OBLIGATIONS Five year summary of employee benefit obligations: At 30 June 2018 2017 2016 2015 2014 R 000 R 000 R 000 R 000 R 000 SOCIETY Present value of obligations 196 188 157 645 119 015 100 219 88 895 Experience adjustments on plan liabilities ( 326) 13 ( 475) 2 124 5 545 GROUP Present value of obligations 223 540 181 180 138 088 119 596 121 257 Experience adjustments on plan liabilities ( 642) 766 ( 28) 4 050 8 685 Long-term incentive plan Appreciation Retention Total Unit value Units issued units units units units 2018 For the 2013 financial year (issued at R10,00) 451 965 - 451 965 30,88 For the 2014 financial year (issued at R11,28) 553 878 - 553 878 27,72 For the 2015 financial year (issued at R12,44) 767 025 417 123 1 623 264 26,35 For the 2016 financial year (issued at R13,65) 1 023 626 338 215 1 834 377 21,72 For the 2017 financial year (issued at R14,57) 1 022 825 275 198 1 776 857 19,16 For the 2018 financial year (issued at R14,83) 1 489 486 321 175 2 443 526 14,83 5 308 805 1 351 711 8 683 867 632 865 The Group operates an LTIP. The increase in the fair value of the share scheme units is recognised as an expense in the period in which the employees' services are rendered. The issued units at the end of the year are as follows: The Group operates a Long-term incentive plan (LTIP) in the Society in which the South African subsidiaries participate. In Namibia, The Avbob Share Trust was established to provide cash-settled incentives for employees of the Namibian subsidiaries. The increase in the fair value of the share scheme units is recognised as an expense in the same period in which the employees' services are rendered. The Group has liabilities in respect of gratuities and medical benefits payable to qualifying employees with- and post- retirement. The gratuities payable with-retirement is a percentage of total guaranteed package, with certain employees being limited to a R50 000 benefit. The medical benefits payable post-retirement are equivalent to 50% of the total medical contribution on the chosen benchmark plan at retirement. The medical contribution subsidy increases annually with CPI up to a maximum of 10%. The current benchmark plan is the Discovery Health Classic Priority plan with 25% savings. The estimated cost of these benefits is provided over the projected service periods of employees. The valuation of these liabilities is performed by management based on the projected unit credit method. Any surplus or shortfall between the actuarial valuation and the accumulated liability is apportioned to and from the statement of comprehensive income as other comprehensive income. Employees appointed after 1 November 1998 (post-retirement benefit) and 1 November 2000 (with-retirement benefit) do not qualify for these benefits. The number of participating members in respect of gratuity payments of the Society totals 95 (2017: 100) and the medical benefit totals 12 (2017: 12). The number of participating members in respect of gratuity payments of the Group totals 167 (2017: 176) and the medical benefit totals 33 (2017: 33). 478 834 439 116 472 536 SOCIETY 2 023 351 Performance - - 112