ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2023 (Expressed in Eastern Caribbean dollars)

22 . Pension asset

The Bank contributes to a defined benefit pension plan (Eastern Caribbean Central Bank or ECCB Pension Plan/Fund) covering substantially all full-time employees. The assets of the ECCB Pension Plan are held separately in an independent trustee administered fund. The pension plan is valued every three years by a firm of independent qualified actuaries, Bacon Woodrow & de Souza Limited – Actuaries and Consultants. The latest available full valuation of the Pension Fund was at 31 March 2022; it used the projected unit credit method, and showed that the fair value of the Fund’s assets at 31 March 2022 represented 119% of the benefits that had accrued to members as at that date. The fair value of the Fund’s assets at that time was $135.8 million (2019: $115.3 million) and the required future service contribution rate was 20.8% (2019: 20.5%) of pensionable salaries. The actuary performed a roll-forward of the valuation to 31 March 2023. The next detailed full valuation will be conducted as at 31 March 2025.

2023 $

2022 $

Net asset in the statement of financial position: Fair value of plan assets Present value of defined benefit obligation

135,830,000 (101,633,000)

127,734,000 (96,758,000)

Present value of over funded surplus

34,197,000

30,976,000

Net defined benefit asset recognised in the statement of financial position

34,197,000

30,976,000

2023 $

2022 $

Reconciliation of amount reported in the statement of financial position: Pension asset, beginning of year

40,124,000 (1,177,000) (7,565,000) 2,815,000

34,197,000 (1,701,000) (4,409,000) 2,889,000

Net pension costs during the year

Remeasurements recognised in other comprehensive income

Bank’s contributions paid to pension plan

34,197,000

Pension asset, end of year

30,976,000

Effective April 1, 2007, the Bank adjusted its contribution to the Pension Fund from 16% to 12% to benefit from the current overfunded position of the pension fund and as prescribed by rule 4(3) of the Pension Fund Trust Deed and Rules (1992).

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