FirstCaribbean International Bank (Bahamas) Limited
FirstCaribbean International Bank (Bahamas) Limited FirstCaribbean International Bank (Bahamas) Limited
Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)11. Retirement Benefit Assets and Obligations (Continued)The amounts recognized on the consolidated balance sheet are determined as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Fair value of plan assets $ 79,005 $ 76,659 $ – $ –present value of funded obligations (79,417) (73,826) (3,840) (3,785)(412) 2,833 (3,840) (3,785)Unrecognized actuarial gain 13,443 9,705 (352) (222)Net asset/(liability) $ 13,031 $ 12,538 $ (4,192) $ (4,007)The pension plan assets include 987,000 (2008: 100,000) ordinary shares in the Bank, with a fair value of $1,034 (2008:$1,160).The actual return on plan assets for the defined benefit sections of the pension plan was $627 (2008: $14,281).The amounts recognized in the consolidated statement of income are as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Current service costs $ 3,061 $ 3,278 $ 76 $ 80Curtailment and settlement costs 124 (150) 226 8Expected return on plan assets (5,430) (6,412) – –Interest cost 4,585 4,248 10 216Total amount included in staffcosts (Note 19) $ 2,340 $ 964 $ 312 $ 304The movements in the net asset/(liability) recognized on the consolidated balance sheet are as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Balance, beginning of year $ 12,538 $ 13,502 $ (4,007) $ (3,814)Charge for the year (Note 19) (2,340) (964) (312) (304)Contributions paid 2,833 – 127 112Employer premiums for existing retirees – – – (1)Balance, end of year $ 13,031 $ 12,538 $ (4,192) $ (4,007)42
Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)11. Retirement Benefit Assets and Obligations (Continued)Changes in the present value of the defined benefit obligation are as follows:2009 2008Present value of funded obligation at beginning of year $ 73,826 $ 68,189Interest cost 4,585 4,248Current service cost 3,061 3,278Benefits paid (1,032) (1,314)Actuarial gain on obligation (1,023) (575)Present value of funded obligation at end of year $ 79,417 $ 73,826Changes in fair value of the plan assets are as follows:2009 2008Fair value of plan assets at beginning of year $ 76,659 $ 92,254Expected return on plan assets 5,430 6,412Benefits paid (1,032) (1,314)Total contributions 3,451 -Actuarial loss on plan assets (5,503) (20,693)Fair value of plan assets at end of year $ 79,005 $ 76,659The Bank has implemented a contributions holiday and expects to contribute $nil to its defined benefit pension plan in2010.The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:2009 2008Equity instruments 53% 64%Debt instruments 46% 35%Cash and other 1% 1%The overall expected rate of return on assets are determined based on the market prices including published brokers’forecasts prevailing on the date of valuation, applicable to the period that the obligation is to be settled.The principal actuarial assumptions used at the balance sheet date are as follows:Defined BenefitPension Plans2009 2008Discount rate 6.0 % 6.0%Expected return on plan assets 7.0 % 6.0%Future salary increases 4.5 % 4.5%Future pension increases 2.5 % 2.5%Post RetirementMedical Benefits2009 2008Discount rate 6.0 % 6.0%Premium escalation rate 4.5 % 4.5%Existing retiree age 60 6043
- Page 5 and 6: Executive ChairmanMichael K. Mansoo
- Page 7: Board of DirectorsMichael MansoorCh
- Page 10 and 11: Our CommunitiesUNSUNG HEROESIn 2009
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- Page 75 and 76: FirstCaribbean International Bank (
- Page 77: Proxy FormThe undersigned(please pr
Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)11. Retirement Benefit Assets and Obligations (Continued)The amounts recognized on the consolidated balance sheet are determined as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Fair value of plan assets $ 79,005 $ 76,659 $ – $ –present value of funded obligations (79,417) (73,826) (3,840) (3,785)(412) 2,833 (3,840) (3,785)Unrecognized actuarial gain 13,443 9,705 (352) (222)Net asset/(liability) $ 13,031 $ 12,538 $ (4,192) $ (4,007)The pension plan assets include 987,000 (2008: 100,000) ordinary shares in the <strong>Bank</strong>, with a fair value of $1,034 (2008:$1,160).The actual return on plan assets for the defined benefit sections of the pension plan was $627 (2008: $14,281).The amounts recognized in the consolidated statement of income are as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Current service costs $ 3,061 $ 3,278 $ 76 $ 80Curtailment and settlement costs 124 (150) 226 8Expected return on plan assets (5,430) (6,412) – –Interest cost 4,585 4,248 10 216Total amount included in staffcosts (Note 19) $ 2,340 $ 964 $ 312 $ 304The movements in the net asset/(liability) recognized on the consolidated balance sheet are as follows:Defined BenefitPost RetirementPension PlansMedical Benefits2009 2008 2009 2008Balance, beginning of year $ 12,538 $ 13,502 $ (4,007) $ (3,814)Charge for the year (Note 19) (2,340) (964) (312) (304)Contributions paid 2,833 – 127 112Employer premiums for existing retirees – – – (1)Balance, end of year $ 13,031 $ 12,538 $ (4,192) $ (4,007)42
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