BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2015
50
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
38
14. Pension Plan Asset…(continued)
f) The amounts recognised in the statement of other comprehensive income are as follows:
2015
2014
Remeasurement loss on obligation
$
(947,709)
115,605
Remeasurement loss on plan assets
243,201
215,003
$ (704,508)
330,608
g) Principal actuarial assumptions at the reporting date (expressed as weighted averages):
2015
2014
Discount rate at end of year
7.75%
7.75%
Expected return on plan assets at end of year
n/a
n/a
Future salary increases
6.75%
6.75%
Future pension increases
1.75%
1.75%
Future changes in NIS ceiling
4.25%
4.25%
Proportion of employees opting for early retirement
0.00%
0.00%
Termination of active members
0.00%
0.00%
Future expenses
0.00%
0.00%
At March 31, 2015, the weighed-average duration of the defined benefit obligation was 25.46 years.
h) Sensitivity analysis on projected benefit obligation:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown
below:
Increase
Decrease
Discount rate (1% movement)
$
(1,699,552)
2,326,990
Future salary growth (0.5% movement)
1,021,616
(912,991)
As mortality continues to improve, estimates of life expectancy are expected to increase. The effect on
the projected benefit obligation of an increase of one year in the life expectancy is approximately
$11,498.
