Desarrollo turístico

Present value of fund obligations 1 279 1 330 1 397 1 243 1 144 Actuarial value of fund assets (1 625) (1 556) (1 404) (1 402) (1 319) Net present value of funded obligations ( 346) ( 226) ( 7) ( 159) ( 175) Effect of limiting defined benefit asset to amount available to employer (asset ceiling) 346 226 7 159 175

Net liability recognised in statement of financial position: - - - - -

Experience adjustments on:

Fund obligations 1.0% 0.6% 0.3% -1.0% 0.5%

Fund assets 1.3% 7.7% 0.8% 2.1% 5.5%

Company

2013 2012 2011 2010 2009 R million R million R million R million R million Net liability recognised in statement of financial position:

Present value of fund obligations 1 127 1 172 1 251 1 092 1 012 Actuarial value of fund assets (1 443) (1 390) (1 251) (1 255) (1 182) Net present value of funded obligations ( 316) ( 218) - ( 163) ( 170) Effect of limiting defined benefit asset to amount available to employer (asset ceiling) 316 218 - 163 170

-

- - - -

Net liability recognised in statement of financial position:

Net liability recognised in statement of financial position:

The Registrar of Pension Funds has indicated that a fund will be considered to be financially unsound when an actuarial valuation reveals that the value of the existing assets is less than the value of accrued liabilities. The accrued liabilities are the liabilities in respect of past service benefits of active members and the pension benefits of the inactive members. Adequate allowance for future salary increases for active members and allowance for pension increases in line with the Fund's pension increase policy are required to ensure that the fund is always financially sound.

A board of Trustees oversees the affairs of the defined benefit fund as required by the Pension Funds Act. The responsibilities of the Trustees are defined in the Act and the Fund rules. An actuarial report on the fund is prepared annually and approved by the Registrar of Pension Funds.

There are no significant risks the entity is exposed to due to the plan. The plan has also used some of its reserves for a dynamic hedging strategy, the dynamic hedging investment strategy in respect of the pensioner liabilities at 1 April 2011 was implemented with the purpose of optimising pension growth and the Trustees on advice of the valuator have approved a number of contingency reserve accounts to protect the Pension Fund against specific contingencies.

The plan assets are also well diversified. The Sanlam Developing Markets plan is subject to similar risk management practices.

The funding level of the fund is 127.0% (previous year 117%) for the Group and 128% (previous year 119%) for the company.There are no statutory minimum funding level requirements.

Based on reasonable actuarial assumptions about future experience, the employers’ contribution, as a fairly constant percentage of the remuneration of the members of the funds, should be sufficient to meet the promised benefits of the funds. The expected return on defined benefit fund assets is calculated based on the long-term asset mix of these funds. The fund assets are analysed into different classes such as equities, bonds and cash, and a separate expected return is calculated for each class. Current market information and research of future trends are used as the basis for calculating these expected returns.

During the year ended 31 December 2013 there were no amendments, settlements or curtailments for any of the benefit plans. The fund is closed to new entrants.

The Group has two defined benefit funds.

Sanlam office personnel (that did not elect to transfer to the defined contribution fund);

Sanlam Developing Markets defined benefit fund SA

The majority of the Group's defined benefit obligation is made up of the Sanlam Life Fund. This Defined Benefit Fund is governed by the Pension Fund Act. Plan participants are insured against the financial consequences of old age, disability and death. According to the Act the minimum benefit of a defined benefit fund is the greater of the present value of the member"s accrued deferred pension and accumulated value of member contributions and vested employer contributions on the date of withdrawal.

The Sanlam office personnel fund and Sanlam Developing Markets defined benefit fund SA are governed by the Pensions Funds Act in South Africa. Both funds are valued annually. According to the latest valuation in accordance with IAS 19 both funds were in a materially sound financial position.

31. RETIREMENT BENEFITS FOR EMPLOYEES

The Group provides for the retirement and medical benefits of full-time employees and for certain part-time employees by means of defined benefit and defined contribution pension and provident funds. At 31 December 2013, 98% of employees were covered by defined contribution funds and 2% by defined benefit funds (2012: 98% and 2% respectively).

At 31 December 2013, 98% of employees were covered by defined contribution funds and 2% by defined benefit funds (2012: 97% and 3% respectively).

31.2 Defined benefit funds (continued) Group

R million Fund assets Fund liabilities Asset ceiling Net Asset/Liability 2013

Balance at beginning of the year 1 556 (1 330) (226) -

Current service cost - ( 22) - ( 22)

Past service cost - - - -

Contributions 12 - - 12

Employee 4 - - 4

Employer 8 - - 8

Benefit payments ( 101) 99 - ( 2)

Interest income / (expense) 121 (108) (20) (7)

Actuarial gains and losses: change in financial assumptions - 82 - 82

Returns from plan assets (excluding amounts included in interest) 40 - - 40

Foreign exchange losses - - - -

Effect of limiting defined benefit asset to amount available to employer - - (100) (100)

Other ( 3) - - ( 3) Balance at end of the year 1 625 (1 279) ( 346) - 2012

Balance at beginning of the year 1 404 (1 397) (7) - Current service cost - ( 19) - ( 19) Past service cost _{- - - -} Contributions _{10 - - 10} Employee _{3 - - 3} Employer 7 - - 7 Benefit payments ( 115) 114 - ( 1) Interest income / (expense) 124 (117) (1) 6 Actuarial gains and losses: change in financial assumptions - 87 - 87 Returns from plan assets (excluding amounts included in interest) 135 - - 135 Foreign exchange losses - - - - Effect of limiting defined benefit asset to amount available to employer - - (218) (218) Other ( 2) 2 - -

Balance at end of the year 1 556 (1 330) ( 226) ( 0)

Company

R million Fund assets Fund liabilities Asset ceiling Net Asset/Liability 2013

Balance at beginning of the year 1 390 (1 172) (218) -

Current service cost - ( 19) - ( 19)

Past service cost - - - -

Contributions 10 - - 10

Employee 3 - - 3

Employer 7 - - 7

Benefit payments ( 84) 84 - ( 0)

Interest income / (expense) 108 (96) (18) (6)

Actuarial gains and losses: change in financial assumptions - 76 - 76

Returns from plan assets (excluding amounts included in interest) 22 - - 22

Foreign exchange losses - - - -

Effect of limiting defined benefit asset to amount available to employer - - (80) (80)

Other ( 3) - - ( 3) Balance at end of the year 1 443 (1 127) ( 316) -

2012

Balance at beginning of the year 1 251 (1 251) - - Current service cost - ( 15) - ( 15) Past service cost - - - Contributions 10 - - 10 Employee 3 - - 3 Employer 7 - - 7 Benefit payments ( 98) 98 - - Interest income / (expense) 119 (112) - 7 Actuarial gains and losses: change in financial assumptions - 108 - 108 Returns from plan assets (excluding amounts included in interest) 110 - - 110 Foreign exchange losses - - - - Effect of limiting defined benefit asset to amount available to employer - - (218) (218) Other ( 2) - - ( 2)

Balance at end of the year 1 390 (1 172) ( 218) -

31.2 Defined benefit funds (continued)

2013 2012 2013 2012