80 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Consolidated Financial Statements March 31, 2023 (expressed in Barbados dollars) 48 15 Pension Plan Asset …continued Currently at retirement employees are entitled to receive a pension benefit equal to: Service to April 1, 2015 1. 1.75% of their pensionable salary as at April 1, 2015 reduced by 1.32% of the national insurable earnings a sat April 1, 2015. Service after April 1, 2015 2. 1.75% of annual pensionable salary earned while a member of the plan after April 1, 2015 reduced by 1.32% of the annual national insurance salary while a member of the plan after April 1, 2015 Employees’ pension benefits are further increased by the amount of pension that can be purchased with any voluntary contributions accumulated with credited interest to their retirement date. There are three Trustees of the Plan, one is an employee representative while the other two are external to the Group. The Trustees are required to understand the risks taken, make reasonable investment decisions, provide members with information and act in the best interests of the plan participants. 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% (2022 - 50%) of the Plan’s assets are invested in the Equity Fund and 50% (2022 - 50%) are invested in the Bonds Fund. 1) The amounts recognised in the consolidated statement of financial position are determined as follows: 2023 $ 2022 $ Present value of obligation to plan members (13,958,780) (12,998,135) Pension plan assets at fair value 17,074,454 17,173,993 Asset recognised in the consolidated statement of financial position 3,115,674 4,175,858
RkJQdWJsaXNoZXIy MTA2MDM=