Trinidad Cement Limited
Annual Report 2012
66
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December, 2012
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
10. Pension plans and other post-retirement benefits
(continued)
2012
2011
$
$
c) Movement in pension plan assets
(continued)
Fair value of plan assets at 1 January
829,816
762,731
Expected return
53,605
53,225
Actuarial gain
47,580
28,764
Benefits paid
(40,021)
(28,345)
Employer and employees’ contribution
12,999
15,416
Expense allowance
(1,623)
(2,051)
Exchange differences
5
76
Fair value of plan assets at 31 December
902,361
829,816
The Group expects to contribute $9.5 million to its defined benefit plan in 2013.
Major categories of plan assets as a percentage of fair value:
2012
2011
Equities
44%
41%
Debt securities
50%
48%
Other assets
6%
11%
Experience history for the current and previous four periods are as follows:
2012
2011
2010
2009
2008
$
$
$
$
$
Defined benefit obligation
(816,890)
(729,588) (619,642)
(578,712) (534,627)
Fair value of plan assets
902,361
829,816
762,731
709,594
673,640
Surplus
85,471
100,228
143,089
130,882
139,013
Experience adjustments on plan liabilities
3,540
(29,104)
16,167
8,917
(29,623)
Experience adjustments on plan assets
47,580
28,764
2,366
(25,182)
(68,097)
The Trinidad Cement Limited Employees’ Pension Fund Plan, a defined benefit plan, is sectionalised for funding
purposes into three segments to provide retirement pensions to the retirees of Trinidad Cement Limited (“TCL”),
TCL Packaging Limited (“TPL”) and Readymix (West Indies) Limited (“RML”). Another pension plan, resident
in Barbados, covers the employees of Arawak Cement Company Limited and Premix and Precast Concrete
Incorporated. Employees of TCL Ponsa Manufacturing Limited are paid directly by the company, an end of service
lump sum payment.
The Parent Company’s employees and employees of TCL Packaging Limited and Readymix (West Indies) Limited
are members of the Trinidad Cement Limited Employees’ Pension Fund Plan. This is a defined benefit Pension
Plan which provides pensions related to employees’ length of service and basic earnings at retirement. The Plan’s
financial funding position is assessed by means of triennial actuarial valuations carried out by an independent
professional actuary. The last such valuation was carried out as at 31 December, 2009 and the results revealed that
the Trinidad Cement Limited and Readymix (West Indies) Limited sections were in surplus by $165.3million and $1.4
million respectively but the TCL Packaging Limited section was in deficit by $2.2 million. The report of the actuary
states that if TCL Packaging Limited continues at its current rate of 23.5% of earnings the past service deficit will be
removed by early 2016.
The service contribution rates for TCL, TPL and RML as a percentage of salaries will remain at 6%, 23.5% and 15.7%
respectively.
A roll-forward valuation in accordance with IAS 19 “Employee Benefits”, using assumptions indicated below, was
done as at 31 December, 2012 for the sole purpose of preparing these financial statements.
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 and its assets are invested through
an independently administered segregated fund policy. The triennial actuarial valuation was last carried out as at
January 2010 and showed a funding surplus of $9.2 million. The actuary has recommended that the company and
employees fund the plan and future service benefits at 7% of members’ earnings.
