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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
27. Actuarial review, continued
 Other than in death, all active insured persons in 2009/10 are assumed to reach age 63 and qualify for a retirement pension
 Mortality rate – The average life expectancy in 2010 is assumed to be as follows:
i. A 65 year old current male beneficiary – 17.8 years
ii. A 65 year old current female beneficiary – 20.3 years
The actuarial present value of other long-term benefits was not calculated The Fund had reserves of US$143,202,037 at March 31, 2010.
At March 31, 2010 there was therefore a shortfall of US$119,605,152 between the reserves of the Fund of US$143,202,037 and the actuarial present value of promised retirement benefits of US$262,807,189. The Directors are examining ways in which this shortfall can be resolved.
A development of the actuarial present value of promised retirement benefits and other long-term benefits and the net assets available for benefits for the period from March 31, 2007 (the date of the 5th actuarial review) is not provided as no calculation of actuarial present value of promised retirement benefits and other long-term benefits was performed at March 31, 2007 and, accordingly, no such information was included in the financial statements. In addition no disclosures of the impact of changes in key assumptions on the actuarial present value of promised retirement benefits and other long-term benefits were possible for the same reason.
28. Contingent liabilities
In the ordinary course of its activities NIB is a party to several legal actions. NIB is contingently liable for costs and damages in the event of any adverse finding by the TCI court (the Court) in relation to any of these legal actions. However, it is not possible to predict the decision of the Court or estimate the amount of such awards, if any. Accordingly, no provision has been made in these financial statements regarding these legal proceedings. Management is of the opinion that the resolution of these matters will not have a material impact on NIB’s financial statements.
29. Commitment
National Insurance Health Contribution
Under the Ordinance NIB is liable for any medical costs for beneficiaries arising from employment injury.
Commencing April 1, 2010 NIB committed to transfer funds annually from its Employment Injury Benefit Reserve to NHIB to cover these costs.
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