UTech Annual Report 2019-20

Page 47 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 26. Employee Benefit Obligations (Continued) The amounts recognised in deriving surplus or deficit is as follows: 2020 2019 $’000 $’000 Current service cost 62,807 67,535 Interest cost 71,771 89,635 Included in administration expenses (Note 8) 134,578 157,170 Movement in the liability 2020 2019 $’000 $’000 Net liability brought forward 1,033,848 1,202,907 Benefit expense (Note 8) 134,578 157,170 Remeasurements recognised in other comprehensive income 517,214 (310,388) Employer contribution (19,073) (15,841) Net liability at the end of the year 1,666,567 1,033,848 Impact on Employee Benefit Obligations Change in Assumption Decrease in Assumption Increase in assumption $’000 $’000 Discount rate (-/+)1% 287,256 (230,393) Medical claims growth rate (-/+)1% (235,349) 288,772 Decrease in Assumption Increase in Assumption $’000 $’000 Life expectancy -1 yr/+1yr (72,749) 73,430 The weighted average duration of the liability in relation to the medical benefits is 15.9 years (2019 – 29 years). University of Technology, Jamaica 163

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