We are pleased to update on the progress made to date on the wind-up of our Defined-Benefit Pension Plan, [effective May 31, 2023].

The process was a collaborative effort with pensioners and employees from Cave Shepherd, Payce Digital, and Duty Free Caribbean (Holdings) Ltd. After extensive meetings held back in March 2023, we achieved an overwhelming 84% vote in favour of a 50:50 surplus share between members and the company. We needed a two-thirds majority across all member classes – pensioners, active members, and deferred pensioners – and we are grateful for the incredible support we received.

Key Highlights:
• A total surplus of BBD$5.0M was achieved, surpassing expectations, with equal amounts allocated between members and the Company.
• Active members were successfully transitioned into defined contribution pension plans, while deferred pensioners had the flexibility to select an insurance company of their choice to purchase an annuity.
• Guardian Life Insurance was selected as the most competitive annuity provider, ensuring life-long security for our pensioners.
• Each member was offered the option to either add their portion of the surplus to their pension, purchase an annuity from a different insurance company, or receive it in cash.
95% of members elected to receive their share of their surplus as a cash payment.
• The first pension payments were made in June 2023, seamlessly deposited into members’ bank accounts.
• Our HR team, led by Dale Niles, went above and beyond, managing tight deadlines and ensuring all members’ KYC and documentation needs were met on time.

We also successfully petitioned the Financial Services Commission (FSC) to approve partial cash payments to pensioners, recognizing their average age of over 80 years old.

We’re delighted to report that of the 80+ members, there are none pending, bringing this process close to completion with all final payments made to pensioners in 2024.

Notably, the Company has pledged BBD$500K from its share of the pension plan surplus as initial funding to launch its corporate philanthropy strategy by establishing the Cave Shepherd Community Fund, demonstrating our commitment to supporting the communities in which we operate.

This is a proud moment for Cave Shepherd & Co. Limited, setting a precedent for future pension plan wind-ups in Barbados. Pensioner, Cecile Archer said “Receiving a share of the pension plan surplus is fantastic! The funds come at a time when I can repay some bills and live more comfortably on my pension, especially with the rising cost of living”.
#CaveShepherd #PensionPlan #CorporateSuccess #Barbados #DefinedBenefitPlan

November 2024