Imperial Logistics International GmbH, a subsidiary located in Germany, operates a number of unfunded defined benefit plans for its employees in Europe. Under the plans the employees are entitled to retirement benefits which are dependent on seniority, length of service and level of pay.

The benefit obligations in Europe are provided for based on actuarial valuations prepared using the projected unit credit method, with the following assumptions:

	2013 %			2012 %
– Discount rate	2,80			3,75
– Projected pension payment increase	2,00			2,00
– Projected salary and other contribution increase	2,00			2,00
– Fluctuation rate (depends on the age of male or female)	0 – 8,00			0 – 8,00

The latest actuarial valuation was performed in June 2013. In the opinion of the actuary, the provision for the defined benefit obligations is adequate. The next valuation will be conducted in June 2014.

	2013 Rm			2012 Rm
The amounts, included in staff costs, recognised in profit or loss in respect of the plans are as follows:
Current service cost	14			7
Actuarial loss	3
Expected return on plan assets	(1)			(1)
Interest costs	33			20
	49			26
The amount included on the statement of financial position arising from the group’s obligations are as follows:
Unfunded obligations	757			590
Movements in the liability in the current year were as follows:
Balance at beginning of year	590			233
Acquisition of subsidiaries and businesses				342
Payments to retired employees	(32)			(23)
Plan assets transferred	4			2
Currency adjustments	146			10
Amounts charged to profit or loss	49			26
Balance at end of year	757			590

	2013 Rm			2012 Rm		2011 Rm		2010 Rm		2009 Rm
Present value of defined benefit obligation liability	1 014			652		258		246		232
(Deficit) surplus	(257)			(62)		(25)		(24)		24
Net liability recognised on the statement of financial position	757			590		233		222		256
In addition, the following net experience adjustments were incurred				(5)		(3)		(7)		1

The deficit to the actuarial liability increased due to a reduction in the discount rates arising from changes in market interest rates. Profit or loss has been debited with the required amount in applying the corridor approach to build up the deficit over the remaining service life.

The adoption of amendments to IAS 19 – Employee Benefits, as outlined in note 3, will result in a deficit being recognised in other comprehensive income.