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2 Material accounting policies (continued)
2.6 Summary of material accounting policies (continued)

p Employee benefits
i Pension obligations
The Group operates defined benefit plans, the assets of which are generally held in separate trustee-administered
funds. The pension plans are generally funded by payments from the relevant Group companies, taking account of
the recommendations of independent qualified actuaries who carry out the full valuation of the Plans every three
years. In Trinidad, Republic Bank Limited took the actuary’s advice regarding a pension holiday, effective January
1999.

Annually, the Group’s independent actuaries conduct a valuation exercise to measure the effect of all employee
benefit plans.

The starting point for this year’s IAS 19, ‘Employee Benefits’ disclosures is the corresponding disclosures for the
year ended September 30, 2024. An actuarial valuation of the Plan’s liabilities has been carried out at September
30, 2023 rolled forward using a combination of asset, liabilities, person-by-person, and global data to September
30, 2025. In doing this the actuaries have allowed for the further accrual of benefits and the increase in liabilities
arising from actual and outstanding salary increases and pension increases during the period under review. The
actuaries have assumed that the Plans’ membership changes during the period under review have followed
the demographic assumptions adopted for previous year’s IAS 19 disclosures rather than allowing for the actual
changes in membership. These calculations have been carried out using the Projected Unit actuarial method as
required by IAS 19.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the Consolidated
statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period
in which they occur. Remeasurements are not reclassified to the Consolidated statement of income in subsequent
periods.

Past service costs are recognised in the Consolidated statement of income on the earlier of:
a The date of the plan amendment or curtailment, and
b The date that the Group recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group
recognises the following changes in the net defined benefit obligation under ‘operating expenses’ in the
Consolidated statement of income:
a Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-
routine settlements
b Net interest expense or income

The defined benefit plans mainly expose the Group to risks such as investment risk, interest rate risk and longevity
risk.

The above accounting requirement in no way affects the pension plans which continue to be governed by the
approved Trust Deed and Rules and remain under the full control of the appointed Trustees.