Page 119 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

9 Employee benefits/obligations (continued)

e Movement in Fair value of plan assets

Defined benefit
pension plan
2025 2024

Fair value of plan assets at start of year 33,470 32,268
Interest income 2,332 2,241
Return on plan assets, excluding interest income (658) (530)
Bank contribution 1,118 1,432
Members’ contributions 137 199
Benefits paid (1,516) (2,077)
Administrative expenses allowance (62) (63)

Fair value of plan assets at end of year 34,821 33,470

Actual return on plan assets 1,674 1,711

f Plan assets allocation as at September 30

Defined benefit pension plan
Fair value % Allocation
2025 2024 2025 2024

Regional equity securities 680 283 2 1
Debt securities 5,743 5,517 17 17
Other short-term securities 2,131 2,133 6 6
Money market instruments/cash and cash equivalents 26,267 25,537 75 76

Total 34,821 33,470 100 100

The Plan’s investment strategy is determined by the Plan’s Trustees with the agreement of the Bank. This strategy is
largely dictated by statutory constraints and the availability of suitable investments. There are no asset-liability matching
strategies used by the plan.

The regional equities held by the pension plan relates to Eastern Caribbean Financial Holdings and has a quoted price
but the market is illiquid. Approximately 14 percent of the Plan’s bond portfolio is made up of a bond issued by the
Government of Grenada which was substantially impaired in 2013, and restructured in 2016.