Bahamas - FirstCaribbean International Bank

FIRSTCARIBBEAN INTERNATIONAL BANK (BAHAMAS) LIMITEDNotes to Consolidated Financial StatementsOctober 31, 2002(expressed in thousands of Bahamian dollars)18 Pension obligations…continuedThe movement in the net asset recognised in the balance sheet is as follows:October 31,2002$December 31,2001$Balance at the beginning of the period 14,945 15,944Acquisitions (2,553) –Pension charge for the period (2,427) (576)Contributions paid 27 –Foreign exchange translation gain/(loss) 1,071 (423)Balance at the end of the period 11,063 14,945The principal actuarial assumptions used were:October 31,2002$December 31,2001$Discount rate 6.40% 7.50%Expected return on plan assets 7.90% 9.00%Future salary increases 4.90% 6.00%Future pension increases 2.90% 3.00%The last actuarial valuation of the plan, which governs employees of the former CIBC bank, wasconducted as at November 1, 2001 and revealed a fund surplus of $4 million.The employees of the former Barclays Bank participate in the defined benefit scheme of the Barclays Bank(1951) pension plan (“the Barclays plan”). The plan is operated under the segregated fund policy. Annualvaluations, in pounds sterling, of the Barclays plan covering the West Indies based staff of the Bank areperformed by an independent actuary.Following completion of the combination, active members of the Barclays plan may elect to transfer intoa defined benefit pension scheme in the new entity (“the FirstCaribbean plan”). Barclays Bank PLC has agreedto transfer to the FirstCaribbean plan assets sufficient to fully fund a ten year contribution holiday forFirstCaribbean. Existing pension obligations for those members who do not transfer will continue to befunded by the Barclays plan. The fair value of the plan assets included in these financial statements is theamount that Barclays Bank PLC expects to transfer to the FirstCaribbean plan in accordance with thisagreement. The actual amount transferred will be determined on the basis of an actuarial valuation and maydiffer from the amount included in these consolidated financial statements.70