Separate Annual Report 2021

64 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2021 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Separate Financial Statements For the year ended March 31, 2021 (Expressed in Barbados dollars) 42 13. Pension Plan Asset, continued The Plan is invested in a segregated pensions fund consisting of two Funds which cover a broad spectrum of available assets. The strategic investment policy of the Funds can be summarised as follows: Bonds Fund: A unit trust with a strategy of acquiring regional and non-regional long-dated securities, where possible, but the majority of its financial investments are still predominantly in Barbados currency. The Fund’s objective is to generate income and preserve capital through investment in competitive yielding fixed income securities including mortgages, bonds and other debt instruments. 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 50% of the Plan’s assets are invested in the Equity Fund and 50% are invested in the Bonds Fund. a) The amounts recognised in the statement of financial position are determined as follows: 2021 2020 Present value of obligation to plan members $ (14,435,966) (12,329,701) Pension plan assets at fair value 15,612,223 13,362,012 Asset recognised in the statement of financial position $ 1,176,257 1,032,311 b) Movement in the amounts recognised in the statement of financial position is as follows: 2021 2020 Asset, beginning of year $ 1,032,311 577,288 Contributions paid 828,006 830,668 Pension expense recognised in statement of income (627,711) (707,218) Re-measurement recognised in other comprehensive income (56,349) 331,573 Asset, end of year $ 1,176,257 1,032,311