CFSL Integrated Report 2025

203

Introduction

Group Overview

Leadership

Strategy & Performance

Explanatory Notes 30 September 2025 26. POST EMPLOYMENT BENEFIT LIABILITIES (CONTINUED) – 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. GROUP COMPANY

Sep-25 MUR m

Sep-25 MUR m

Sep-24 MUR m

Sep-24 MUR m

(i) Amount recognised in the Statements of financial position are as follows: Present value of funded obligations

110.8

110.8

119.2

119.2

(67.6)

(67.6)

(67.0)

(67.0)

Fair value of plan assets

43.2

43.2

52.2

52.2

Liability in the Statements of Financial Position

The reconciliation of the opening balances to the closing balances for the net defined benefit liability is as follows: At 1 October

52.2

52.2

63.3

63.3

6.1

6.1

8.3

8.3

Charged to profit or loss

(1.4)

(1.4)

(12.5)

(12.5)

Charged to other comprehensive income

(13.7)

(13.7)

(6.9)

(6.9)

Contributions paid At 30 September

43.2

43.2

52.2

52.2

(ii) Amount recognised in profit or loss and other comprehensive income are as follows: Current service cost

3.8

3.8

4.2 1.3 5.5 2.8 8.3

4.2 1.3 5.5 2.8 8.3

–

–

Past service cost

3.8 2.3 6.1 0.3 3.4

3.8 2.3 6.1 0.3 3.4

Service cost

Net interest on net defined benefit liability

Components of amount recognised in profit or loss Return on plan assets below interest income

(4.7)

(4.7)

9.0

9.0

Liability experience loss

(5.1) (1.4)

(5.1) (1.4)

(16.8) (12.5)

(16.8) (12.5)

Liability gain due to change in financial assumptions

Components of amount recognised in OCI

(iii) Movements in the defined benefit obligations over the year are as follows: At 1 October

119.2

119.2

124.3

124.3

3.8

3.8

4.2 1.3 5.5

4.2 1.3 5.5

Current service cost Past service cost Interest expense Other benefits paid

–

–

5.9

5.9

(16.4)

(16.4)

(8.3)

(8.3)

3.4

3.4

9.0

9.0

Liability experience loss

(5.1)

(5.1)

(16.8)

(16.8)

Liability gain due to change in financial assumptions

110.8

110.8

119.2

119.2

At 30 September