Eastern Caribbean Central Bank 2024-2025 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2025 (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 Actuaries calculations of the Funds liabilities are based on the detailed actuarial calculations carried out using the data provided for the statutory funding valuation of the Pension Fund as at 31 March 2022. Those results were rolled forward to 31 March 2025. A full valuation is being carried out as at 31 March 2025 for funding purposes, the results of which will come through for the disclosures in the 2025-26 financial year. 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 and the required future service contribution rate was 20.8% of pensionable salaries. The next detailed full valuation will be conducted as at 31 March 2028. 2025 $ 2024 $ Net asset in the statement of financial position: Fair value of plan assets 150,727,000 142,514,000 Present value of defined benefit obligation (123,773,000) (105,043,000) Surplus 26,954,000 37,471,000 Effect of asset ceiling - (2,124,000) Net defined benefit asset recognised in the statement of financial position 26,954,000 35,347,000

2025 $

2024 $

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

35,347,000 (1,912,000) (10,062,000) 3,581,000

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

Pension asset, end of year

26,954,000

35,347,000

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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