Page 92 - NIB Annual Report 12-13 | 13-14
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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
26. Capital management, continued
During the year ended March 31, 2013 US$3,932,717 (2012 – US$2,521,166) was transferred from the Disablement and Death Benefit Reserve to the Employment Injury Benefit Reserve so as to maintain the required reserve for Employment Injury Benefit at March 31, 2013 and March 31, 2012.
There was no change to NIB’s management of capital during the year ended March 31, 2013 and 2012. NIB has complied with the above regulatory imposed capital requirements at the year-end.
NIB is not subject to any externally imposed capital requirements.
27. Actuarial review
NIB has elected to apply IAS 26 which requires the actuarial present value of promised retirement benefits to be recognised on the statement of financial position, in the notes to the financial statements or in an accompanying actuarial report. NIB has chosen to disclose the actuarial present value of promised retirement benefits and other long-term benefits in the notes to these financial statements.
The 6th actuarial review of NIB was conducted by Horizonow Consultants Ltd. (the Actuary) at March 31, 2010 and a report issued on December 13, 2010.
NIB provides retirement and other benefits to qualifying beneficiaries. A summary of these benefits is disclosed in note 3(f)(iv) to these financial statements.
NIB currently finances the Fund by considering expected cash inflows from contributors and cash outflows to beneficiaries over an extended period, alongside the assets that have accumulated to date from contributions exceeding benefit payments.
The actuarial present value of promised retirement benefits has been calculated on an accrued benefits basis using a current salary approach. The actuarial present value of other long-term benefits was not quantified.
Under this methodology the actuarial present value of promised retirement benefits at March 31, 2010, the date of NIB’s latest actuarial review, was US$262,807,189.
The next actuarial review was scheduled to be conducted as at March 31, 2013 but has not yet been completed.
The key assumptions and methods used in this calculation were as follows:
Inflation – 2.5% per annum
Discount rate – 5% per annum
Average retirement age – 63 years old
88 | The National Insurance Board of The Turks and Caicos Islands
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