ECCB 2023-2024 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2024 (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 2024. The next detailed full valuation will be conducted as at 31 March 2025. 2024 $ 2023 $ Net asset in the statement of financial position: Fair value of plan assets 142,514,000 127,734,000 Present value of defined benefit obligation (105,043,000) (96,758,000) Surplus 37,471,000 30,976,000 Effect of asset ceiling (2,124,000) - Net defined benefit asset recognised in the statement of financial position 35,347,000 30,976,000

2024 $

2023 $

Reconciliation of amount reported in the statement of financial position: Pension asset, beginning of year Remeasurements recognised in other comprehensive income Bank’s contributions paid to pension plan Net pension costs during the year

30,976,000 (3,536,000) 4,851,000 3,056,000

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

Pension asset, end of year

35,347,000

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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