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Annual Report 2010 |  |
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International Plan Dear Plan Participant,
This 2010 Annual Report of the Inter-American Development Bank Staff Retirement Plan is designed to provide an overview of the activities of the Plan for the year ended December 31, 2010. Included in this report is information on the Plan’s demographics and financial activity. Also presented, on pages 6 and 7, is a description of the Staff Retirement Fund’s new Investment Policy approved in 2010.
In 2010, the Fund’s assets returned 10.3%, before fees, compared with 10.2% for its Policy Benchmark. The slight outperformance of the Fund over its Policy Benchmark was primarily due to the active management of its core and long duration fixed income investments. Financial markets had a second consecutive year of strong returns as growth in the global economy continued to improve.
At December 31, 2010, the ratio of Plan assets to its projected benefit obligation (PBO) was 105%, compared with 109% at the end of 2009. The PBO represents the liabilities under the Plan for benefits that have accrued to date with allowance for future salary increases on those benefits where applicable. Another measure, the accrued benefit obligation (ABO), represents the liabilities under the Plan for benefits that have accrued to date based on current salaries. The ratio of Plan assets to the ABO at the end of 2010 was 120%, compared with 123% at the end of 2009.
In consultation with the Plan’s Actuary, the Bank has budgeted a contribution to the Plan equal to 25.3% of net remuneration for 2011, compared with 24.5% for 2010.
If you have any comments or questions about this report, please reach us at the contact information below.
Robert Cole
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Local Plan Dear Plan Participant,
This 2010 Annual Report of the Inter-American Development Bank Local Retirement Plan is designed to provide an overview of the activities of the Plan for the year ended December 31, 2010. Included in this report is information on the Plan’s demographics and financial activity. Also presented, on pages 6 and 7, is a description of the Pension Reserve Fund of the Local Retirement Plan’s new Investment Policy, approved in 2010.
In 2010, the Fund’s assets returned 10.8%, before fees, compared with 10.9% for its Policy Benchmark. The slight underperformance of the Fund compared with its policy Benchmark was due to an underweight in equities during a market advance and an under-representation in small capitalization stocks. Financial markets had a second consecutive year of strong returns as growth in the global economy continued to improve.
At December 31, 2010, the ratio of Plan assets to its projected benefit obligation (PBO) was 92%, compared with 95% at the end of 2009. The PBO represents the liabilities under the Plan for benefits that have accrued to date with allowance for future salary increases on those benefits where applicable. Another measure, the accrued benefit obligation (ABO), represents the liabilities under the Plan for benefits that have accrued to date based on current salaries. The ratio of Plan assets to the ABO at the end of 2010 was 119%, compared with 122% at the end of 2009.
In consultation with the Plan’s Actuary, the Bank has budgeted a contribution to the Plan equal to 24.7% of net remuneration for 2011, compared with 22.5% for 2010.
If you have any comments or questions about this information, please reach us at the contact information below. Robert Cole
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