67
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)
c) Movement in pension plan assets
(continued)
Principal actuarial assumptions used are as follows:
2012
2011
Discount rate
5.0%-7.75%
5.5%-7.75%
Expected return on plan assets
0%-7.75%
6.5%-7.75%
Rate of future salary increases
2.5%-6.75%
2.5%-5.00%
Rate of future pension increases
0.0%-3.75%
0.0%-3.75%
Caribbean Cement Company Limited operates a defined contribution Pension Plan for all permanent employees.
This plan is managed by an independent party.
d) Other post-retirement benefits
2012
2011
$
$
The retirees’ medical/service benefit liabilities are derived as follows:
Defined benefit obligation
42,983
40,580
Unrecognised loss
(17,503)
(18,971)
25,480
21,609
Movement in the retirees’ medical/service benefit liabilities:
Opening balance
21,609
19,325
Total expense for the year
4,986
3,277
Benefits paid
(1,115)
(993)
Retirees’ medical/service benefit liabilities
25,480
21,609
Changes in the present value of the benefit obligation are as follows:
Defined benefit obligation at 1 January
(40,580)
(27,148)
Interest cost
(2,202)
(1,665)
Current service cost
(1,789)
(1,271)
Actuarial loss/(gain)
473
(11,505)
Benefits paid
1,115
1,009
Defined benefit obligation at 31 December
(42,983)
(40,580)
Expected benefits to be paid in 2013 will amount to $1.2 million.
Principal actuarial assumptions as at 31 December were:
2012
2011
Discount rate
5.0%
5.5%
Medical expense inflation
5.0%
5.0%
Rate of future salary increases
5.0%
5.0%
11. Inventories
2012
2011
$
$
Plant spares
154,565
173,319
Raw materials and work in progress
253,434
204,682
Consumables
126,917
115,474
Finished goods
79,609
63,544
614,525
557,019
Inventories are shown as net of obsolescence provision of $20.3 million (2011: $9.3 million). The provision was increased
by $7.8 million for the Kiln 4 spares as a consequence of the impairment of that plant.
