Page 180 - WCPP Annual Report 2021-22_Draft #7.6.2

Annual Report for the 2021/22 Financial Year
Vote 2: Western Cape Provincial Parliament
Part E: Financial Information for the year ended 31 March 2022

Notes to the Annual Financial Statements

16. Employee benefit obligations (continued)
Once-off gratuity: Movements
Opening balance 9,614,000 6,876,000
Benefits paid (480,000) -
Net expense recognised 4,142,000 2,738,000

13,276,000 9,614,000

Once-off gratuity: Net expense recognised

Current service cost 2,513,000 2,378,000

Interest cost 1,288,000 687,000

Actuarial loss/(gain) 341,000 (327,000)

4,142,000 2,738,000

Medical aid benefits: Movements
Opening balance 9,514,000 9,660,000

Benefits paid (1,283,000) (1,275,108)

Net expense recognised 362,000 1,129,108

8,593,000 9,514,000

Medical aid benefits: Net expense recognised
Interest cost 1,063,000 1,111,000
Actuarial loss/(gain) (701,000) 18,108

362,000 1,129,108

Defined benefit plan

Post retirement medical aid plan

The legislature offers continuation members (pe nsioners) the opportunity of belonging to one of several medical aid schemes,
most of which offer a range of options pertaining to levels of cover. Upon retirement, a member may continue membership of the

medical aid scheme. Upon a member’s death -in-service or death -in-retirement, the surviving dependants may continue

membership of the medical aid scheme.

Members contribute according to tables of contribution rates which differentiate between them on the type and number of

dependants. Some options also differentiate on the basis of income.

The legislature has agreed to subsidise the medical aid contributions of retired members in the following way:
Members of the legislature will receive medical aid subsidies at retirement. The legislature will provide a 67% subsidy of the
main member (and dependants) subsidies at retirement. However, these members need to be part of the PARMED medical aid
scheme.

As at the valuation date, the medical aid liability was unfunded as no dedicated assets have been set aside to meet this liability.

Gratuity awards

Gratuity payments are awarded in terms of the Government Gazette No 31597 dated 12 November 2008. A member of

Provincial Legislature who has served more than 5 years and whose term of office has ended should be entitled to a once - off
gratuity equal to 4 months pensionable salary for every 5 years of service or a pro-rata part of the 5 year period.

Long service awards

All permanent employees are entitled to long service benefits which are awarded in the form of leave days and a percentage of
salary.

In 2022: 99 (2021: 103) of the employees qualified for long service awards.

Annual Report for 2021/22 Financial Year Page 165