2006 - Eastern Caribbean Securities Exchange

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Notes to the Consolidated Financial Statementsfor the year ended 31st December, 2006Expressed in Thousands of Trinidad and Tobago dollars10. Pension plans and other post-retirement benefits (continued)c) Movement in pension plan assets/(liabilities) (continued)Major categories of plan assets as a percentage of fair value:2006 2005Equities 45% 53%Debt 39% 33%Property 1% 1%Other 15% 13%The Trinidad Cement Limited Employees’ Pension Fund Plan, a defined benefit plan, is sectionalisedfor funding purposes into three segments to provide retirement pensions to the retirees of TrinidadCement Limited (“TCL”), TCL Packaging Limited (“TPL”) and Readymix (West Indies) Limited(“RML”). Another pension plan, resident in Barbados, covers the employees of Arawak CementCompany Limited and Premix and Precast Concrete Incorporated.The parent company’s employees and employees of TCL Packaging Limited and Readymix (WestIndies) Limited are members of the Trinidad Cement Limited Employees’ Pension Fund Plan. Thisis a defined benefit Pension Plan which provides pensions related to employees’ length of serviceand basic earnings at retirement. The Plan’s financial funding position is assessed by means oftriennial actuarial valuations carried out by an independent actuary. The last such valuation wascarried out as at 31st December, 2003 and the results revealed that the Trinidad Cement Limitedsection was in surplus by $99.1 million but the TCL Packaging Limited and Readymix (West Indies)Limited sections were in deficit by $1.5 million and $3.3 million respectively.The directors of Trinidad Cement Limited agreed in December 2005 to transfer an aggregate of$2.2 million of Pension Plan assets from the TCL section to the sections for TCL Packaging Limitedand Readymix (West Indies) Limited in the amounts of $1.0 million and $1.2 million, respectively.This was to reduce the cash contributions payable by these subsidiaries up to December 31, 2006.This transfer has resulted in a net charge to the Group of $560,000 in the statement of earningsfor 2005.The service contribution rates for TCL, TPL and RML as a percentage of salaries will remain at 6%,11.1% and 14.5% respectively.Employees of Arawak Cement Company Limited are members of a defined benefit pension plan,which became effective in September 1994. The plan is established under an irrevocable trust andits assets are invested through an independently administered segregated fund policy. The triennialactuarial valuation was last carried out at September 2000 and established an unfunded liabilityin respect of past service cost of $2.2 million. The actuary has recommended that the companyand employees fund this liability and future service benefits at 7% of members’ earnings.A roll-forward valuation for both defined benefit plans, using assumptions indicated below, wasdone as at 31st December, 2006 for the sole purpose of preparing these financial statements.Annual Report 200623
Notes to the Consolidated Financial Statementsfor the year ended 31st December, 2006Expressed in Thousands of Trinidad and Tobago dollars10. Pension plans and other post-retirement benefits (continued)c) Movement in pension plan assets/(liabilities) (continued)Principal actuarial assumptions used are as follows: 2006 2005Discount rate 8 - 8.75% 7%-7.5%Expected return on plan assets 8 - 10% 7% - 9%Rate of future salary increases 7 - 7.75% 6%-6.75%Rate of future pension increases 3.5 - 4% 2.5% - 3%Caribbean Cement Company Limited operates a defined contribution Pension Plan for allpermanent employees. This plan is managed by an independent party.d) Other post-retirement benefits 2006 2005The retirees’ medical benefit liabilities are derivedas follows:Defined benefit obligation 15,009 12,706Unrecognised loss (6,812) (6,091)Defined benefit obligation 8,197 6,615Movement in the retirees’ medical benefit liabilities:Opening balance 6,615 5,341Total expense for the year 1,915 1,588Contributions paid (333) (314)Retirees’ medical benefit liabilities 8,197 6,615Changes in the present value of the benefit obligationare as follows:Defined benefit obligation at 1st January (12,706) (11,230)Interest cost (972) (720)Current service cost (623) (551)Actuarial loss (1,041) (519)Benefits paid 333 314Defined benefit obligation at 31st December (15,009) (12,706)Expected benefits to be paid in 2007 amounts to $0.360 million.Principal actuarial assumptions as at December 31st were:24Discount rate 8.75% 7.75%Medical expense inflation 7.75% 6.75%
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ContentsOur Vision and Mission Stat
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Notice of Annual MeetingNotice is h
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Consolidated Financial Summary 2001
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Share PerformanceTrading Volumes (t
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A new record in TrinidadSince the b
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Board of Directorsfrom left to righ
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Board of Directorsand Director of U
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On the ball in GuyanaWhen the crowd
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Beyond Boundaries in JamaicaAcross
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Group Executive Committeefrom left
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Chairman’s Reviewslings by 92%. T
Page 24 and 25: Playing to win in BarbadosThe missi
Page 26 and 27: Group Chief Executive Officer’s R
Page 36 and 37: Trinidad Cement LimitedTrinidad Cem
Page 38 and 39: Caribbean Cement Company LimitedCar
Page 40 and 41: Arawak Cement Company LimitedArawak
Page 42 and 43: Readymix (West Indies) LimitedReady
Page 44 and 45: TCL Packaging LimitedTCL Packaging
Page 46 and 47: TCL Ponsa Manufacturing LimitedTCL
Page 48 and 49: TCL Guyana Inc.TCL Guyana Inc. was
Page 50 and 51: Rally ‘round the youthWithin our
Page 52 and 53: Management Proxy CircularREPUBLIC O
Page 54 and 55: Independent Auditors’ ReportTo th
Page 56 and 57: Consolidated Balance Sheetas at 31s
Page 58 and 59: Consolidated Statement of Changes i
Page 60 and 61: Notes to the Consolidated Financial
Page 74: Notes to the Consolidated Financial
Page 89: Proxy FormPLEASE INDICATE WITH AN
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2006 - Eastern Caribbean Securities Exchange

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