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12.5.1.3 Decrement assumptions
We have applied the same pre-retirement mortality table of SA85-90 and post-retirement mortality table of PA(90) in
the current valuation period as the previous valuation.
12.5.2 Key demographic assumptions
The demographic assumptions were consistent in the previous and current valuation period, and are as noted below:
Normal retirement age – 60 years
Employment age used for past service period:
Actual service entry ages
Assumption
Active employees
Continuation pensioners
Age difference between spouses
Three years
Proportion married in retirement
Proportion married table
Actual marital status used
Example at stated date
Proportion married (Male and Female)
20
1.30%
25
12.90%
30
48.30%
35
80.90%
40
70.20%
45
84.70%
50
84.90%
55
86.00%
60
90.00%
12.5.3 Continuation percentages
It was assumed, in the previous valuation and current valuation, that continuation of the post-employment healthcare
subsidy would be at 100% at retirement age.
12.5.4 Income brackets at retirement
It is fairly common to expect a continuation pensioner’s income to be lower than the income earned just prior to
retirement. The difference between the income after retirement and the income just prior to retirement is referred to
as the net replacement ratio (NRR). The NRR is used to reduce the expected salary on retirement. We have assumed an
NRR on retirement of 75%. A salary inflation assumption is used to adjust the salary from the current date to the date of
retirement. This assumption should be considered in conjunction with the assumed CPI rate.
12.5.5 Withdrawal and ill health assumptions
The withdrawal assumptions have been set in line with those generally observed in the South African market. They are
consistent with the previous valuation period, and noted on the table below:
Age
Males
20
13.30%
25
13.30%
30
10.90%
35
8.20%
40
5.80%
45
4.10%
50
2.90%
55+
0.00%