Investor Presentaiton
168
Notes to the Consolidated Financial Statements
This section presents the Group's benefits provided to its employees,
including superannuation and defined benefit plans.
6.3
Retirement plans
Other
6
169
Annual Report 2023
Woolworths Group
highlights
(ii)
Movements in the present value of the defined benefit obligation and fair value of plan assets
The amount included in other non-current liabilities in the Consolidated Statement of Financial Position in respect of the net
defined benefit liability is as follows:
1
6.3
Retirement plans (continued)
FAIR VALUE OF PLAN ASSETS
PRESENT VALUE OF DEFINED
BENEFIT OBLIGATION
NET DEFINED BENEFIT OBLIGATION
2023
$M
2022
$M
2023
2022
2023
2022
$M
$M
$M
$M
250
289
(288)
(335)
(38)
(46)
(3)
(5)
10
7
(12)
(8)
2
2
(2)
(2)
12
9
(17)
(15)
(5)
EG
Performance
16
2
Business
review
1
3
6
(21)
6
(21)
(9)
22
(9)
22
Total amount recognised in other
comprehensive income, before tax
6
(21)
(9)
22
2023
2022
Other movements:
%
%
Benefits paid
(44)
(37)
44
37
5.1
4.3
Contributions by employer
15
13
15
15
13
13
3.5
3.0
3.0
Administration costs and taxes
(3)
(3)
3
3
2.6
Balance at end of period
236
250
(267)
(288)
(31)
(38)
6.3.1
Defined contribution plans
The majority of employees in Australia and New Zealand are part of a defined contribution superannuation scheme and
receive fixed contributions from the Group in accordance with the rules of the WGSP and/or any statutory obligations.
The amount recognised as an expense for defined contribution plans is $744 million (2022: $681 million).
6.3.2
Defined benefit plans
The Company sponsors a defined benefit plan, the Woolworths Group Superannuation Plan (WGSP or the Plan), that provides
superannuation benefits for employees upon retirement. The WGSP consists of members with defined benefit entitlements
and defined contribution benefits. The defined benefit plan is closed to new members. The assets of the WGSP are held
in a sub-plan within AMP SignatureSuper that is legally separated from the Group. The WGSP invests entirely in pooled unit
trust products where prices are quoted on a daily basis.
The Group contributes to the WGSP at rates as set out in the Trust Deed and Rules and the Participation Deed between the
Group and AMP Superannuation Limited. Members contribute to the WGSP at rates dependent upon their membership
category. The plan provides lump sum defined benefits that are defined by salary and period of membership.
An actuarial valuation was carried out at both reporting dates by Willis Towers Watson. The principal actuarial assumptions
used for the purpose of the valuation are as follows:
Balance at start of period
Recognised in Consolidated
Statement of Profit or Loss:
Current service cost
Finance income/(costs)
Contributions by plan participants
Total amount included in branch.
expenses
Recognised in the Consolidated
Statement of Other
Comprehensive Income:
Return/(loss) on plan assets
Actuarial gain/(loss)
At the reporting date, the Group's exposure to reasonably possible changes of the discount rate or expected rate of salary
increase, while holding all other assumptions constant, is not considered material.
Discount rate
Expected rate of salary increase
Rate of price inflation
The average duration of the defined benefit obligation at the end of the reporting period is 5.4 years (2022: 5.4 years) which
relates wholly to active participants.
2023
2022
%
%
55
59
17
16
14
12
6
3
8
10
100
100
The plan invests entirely in pooled superannuation trust products where prices are quoted daily. The asset allocation ofthe
plan has been set taking into account the membership profile, the liquidity requirements of the plan, and risk appetite ofthe
Group. The percentage invested in each asset class is as follows:
(i)
Categories of plan assets
Equity instruments
Debt instruments
Real estate
Cash and cash equivalents
Other
Total
Directors'
Report
4
Report
Financial
Significant Accounting Policies
Defined contribution plans
Payments to defined contribution plans are recognised as an expense when employees have
rendered service entitling them to the contributions.
Defined benefit plans
The net defined benefit asset or liability recognised in the Consolidated Statement of Financial
Position represents the surplus or deficit in the Group's defined benefit plans which is calculated
by estimating the amount of future benefit that employees have earned in the current and prior
periods, discounting that amount, and deducting the fair value of the plan assets. The calculation
of the defined benefit obligation is performed at the end of each annual reporting period
by a qualified actuary using the projected unit credit method.
Remeasurements of the net defined benefit asset or liability, which comprise actuarial gains and
losses, and the return on plan assets (excluding interest), are recognised in the period in which
they occur, directly in other comprehensive income and will not be reclassified to profit or loss.
The Group determines the net interest income or expense on the net defined benefit asset or liability
for the period by applying the discount rate at the start of the period to the net defined benefit asset
or liability, taking into account any changes during the period as a result of contributions and benefit
payments. Net interest income or expense, service costs and other expenses related to defined
benefit plans are recognised in the Consolidated Statement of Profit or Loss.
LO
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