Page 121 - 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)

j Sensitivity analysis
The calculation of the defined benefit obligation is sensitive to the assumptions used. The following table summarizes
how the defined benefit obligation as at September 30, 2025, would have changed as a result of reasonable changes in
key assumptions used.

Defined benefit Employee defined

pension plan benefit liabilities
1% p.a. 1% p.a. 1% p.a. 1% p.a.
increase decrease increase decrease

Discount rate (3,845) 4,770 (891) 1,123
Future salary increases 4,487 (3,793) 23 (21)
Medical cost increases – – 996 (801)

An increase of 1 year in the assumed life expectancies shown above would increase the defined benefit obligation at
September 30, 2025, by $0.442 million and the post-retirement medical benefit by $0.195 million but decrease group life
obligation by $0.045 million.

These sensitivities were calculated by re-calculating the defined benefit obligations using the revised assumptions.

k Funding
The Bank meets the balance of the cost of funding the defined benefit pension plan. The funding requirements are based
on regular actuarial valuations of the Plan made every three years and the assumptions used to determine the funding
required may differ from those set out above. The Bank expects to pay $2.5 million (excluding any contribution arrears due
from prior years) to the pension plan in the 2026 financial year.

The Bank operates the post-retirement medical benefit plan as a self-insured arrangement administered by insurance
brokers. Retirees meet 40 percent of the total premium due and the bank meets the remaining 60 percent. Assuming no
change in premium the Bank expects to pay $0.158 million in retirees medical premium in the 2026 financial year.

The Bank pays premiums to meet the cost of insuring the plan’s benefits. Assuming no change in premium rates the
Bank expects to pay premiums of around $0.017 million to the group life plan in the 2026 financial year.