The Group participates in the Alexander Forbes Retirement Fund. This is an umbrella fund arrangement created for the provision of retirement benefits.

The Fund is a defined-contribution plan and is governed by the Pension Funds Act, No 24 of 1956.

The financial position of the Alexander Forbes Retirement Fund (Provident Section): Italtile Limited is currently reviewed on a monthly basis.

As at 30 June 2020 and 2019, the Fund was found to be in a sound financial position.

At 30 June 2020, 1 512 (2019: 1 470) employees of the Group and franchisees were members of the Fund, to which the Group and franchisees contributed R28 million (2019: R33 million) and the employees Rnil (2019: Rnil).

The Fund is open to all permanent staff with their participation thereof being a condition of employment.

Their dependants are eligible for death benefits accruing from the Fund in the event of the member’s death.

All permanent full-time employees of franchise stores are required to participate in the Fund.

Ceramic Industries

In South Africa, Ceramic contributes to two defined contribution retirement funds for its employees, which are governed by the Pension Funds Act, No 24 of 1956.

The funds are administered by Alexander Forbes and NMP Personal Financial Services.

All permanent employees are required to join one of the funds.

At 30 June 2020, 1 060 (2019: 1 085) employees of Ceramic were members of the funds, to which Ceramic contributed R19 million (2019: R20 million).

In Australia, Ceramic contributes the legislated defined contribution amounts in the various superannuation funds specified by its 60 employees (2019: 85).