Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 61 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2019 (Expressed in Barbados dollars) 46 15. Pension Plan Asset, continued Equity Fund: This is a unit trust that invests mainly in Barbadian equities, Barbadian real estate, commercial mortgages, foreign equities and bonds. This Fund’s objective is to provide long-term capital growth through investment in a diversified portfolio of equity securities and real estate. The current instruction is to invest all new cash flows 50% in the Bonds Fund and 50% in the Equity Fund. At present, approximately 51% of the Plan’s assets are invested in the Equity Fund and 49% are invested in the Bonds Fund. a) The amounts recognised in the consolidated statement of financial position are determined as follows: 2019 2018 Present value of obligation to plan members $ (12,074,739) (10,390,567) Pension plan assets at fair value 12,652,027 12,198,888 Asset recognised in the consolidated statement of financial position $ 577,288 1,808,321 b) Movement in the amounts recognised in the consolidated statement of financial position is as follows: 2019 2018 Asset, beginning of year $ 1,808,321 1,232,061 Contributions paid 782,916 693,929 Pension expense recognised in consolidated statement of income (465,744) (482,153) Re-measurement recognised in other comprehensive income (1,548,205) 364,484 Asset, end of year $ 577,288 1,808,321 c) Changes in the present value of the obligation for defined benefit pension plans were as follows: 2019 2018 Obligation, beginning of year $ 10,390,567 9,407,862 Interest cost 842,320 777,197 Current service cost 560,818 536,927 Employees’ contributions 197,840 147,347 Benefits paid (454,327) (62,059) Actuarial losses arising from: Experience adjustments 537 ,521 (416,707) Obligation, end of year $ 12,074,739 10,390,567