La Cabana Beach & Racquet Club June 22, 2011 at 3:00 p.m. - PowerPoint PPT Presentation

La Cabana Beach & Racquet Club June 22, 2011 at 3:00 p.m.

Agenda Opening and Introduction 1. Approval of minutes GAM 2010 2. 3. Welcome new member companies Financial Performance 2010 4. - M ajor impact - Balance Sheet - Highlights - Investments - Discharge of the Board Pause M embership 5. Point of view Actuary: developments 6. 7. Point of view Actuary: indexation Proposed change to DB plan 8. 9. Objectives 2010/ 2011 Free word 10. Closing 11.

PFTSA Board M embers Board member representing Board member representing Employers Employers Vice Chair Vice Chair Mr. Ton Kolman Mr. Ton Kolman Ms. Nathaly Wouters Ms. Nathaly Wouters Mr. Glenn Farro Mr. Glenn Farro Board member representing Board member representing Employees Employees Chairman Chairman Mr. Jossy Lacle Mr. Jossy Lacle Secretary Secretary Mrs. Valerie Mrs. Valerie Pietersz Pietersz- - Mr. Rudy Geerman Mr. Rudy Geerman Mrs. Ann Brinkman Mrs. Ann Brinkman Camacho Camacho

M inutes of GAM 2010  Approval of minutes GAM dated August 31 , 201 0

Welcome New M embers  Chrec Aruba Casino N.V.  Atlantis Submarines N.V.  Lite Life M edicab N.V.

M ajor impact 2010  A more recent mortality table. (GBM / GBV 1990-1995). This adaptation led to significant addition to the provision. (afl. 208,335). By applying these tables the longevity risk for the Fund is greatly reduced.  The provision for disability coverage.  Coverage rate is 99.34% (2010: 99.8%).

BALANCE SHEET 2010 2009 Change in Afl. Change in % Assets – Receivables & prepaid expenses 278,220 525,278 -247,058 -47% – Investments 22,608,332 20,694,898 1,913,434 9% – Fixed assets 65,203 57,135 8,068 14% – Other (cash and cash equivalents) 4,789,281 3,499,689 1,289,592 37% Total Assets 27,741,036 24,777,000 2,964,036 12% Liabilities – Accounts payable 227,967 235,931 -7,964 -3% – Long Term Liabilities 27,152,905 23,927,765 3,225,140 13% – Fund Capital 360,164 613,304 -253,140 -41% Total Liabilities 27,741,036 24,777,000 2,964,036 12%

Highlights 2010 2009 (in thousands) Change in Afl. Change in % -253 266 (519) -195.1% Net income 4,172 3,847 325 8.4% Contribution 1,349 1,312 37 2.8% Investment income 162 - 162 100.0% Rental income Pension operational costs 706 683 23 3.4% 2,786 2,662 124 4.7% Total amount of members

Total investments Accrued Investment Bonds Time M ortgages Loan Total interest property deposits Afl. Afl. Afl. Afl. Afl. Afl. Afl. 2010 Government 217,991 - 9,579,000 - - - 9,796,991 Financial instituion 205,358 - - 6,500,000 - 379,656 7,085,014 Real estate - 3,877,427 - - - - 3,877,427 Others - - - - 1,848,900 - 1,848,900 Balance as of Dec 31 423,349 3,877,427 9,579,000 6,500,000 1,848,900 379,656 22,608,332 2009 Government 205,932 10,191,500 - - - 10,397,432 Financial instituion 187,530 - - 6,000,000 - - 6,187,530 Real estate - 2,810,078 - - - - 2,810,078 Others - - - - 1,300,648 - 1,300,648 Balance as of Dec 31 393,462 2,810,078 10,191,500 6,000,000 1,300,648 - 20,695,688

Investments Mortgages 8% Government 9,796,991 Real estate Financial instituion 7,085,014 1 7% Government Real estate 3,877,427 43% M ortgages 1,848,900 Total 22,608,332 Financial instituion 32%

Board Compensation  Chairman and Vice Chair do receive a monthly remuneration  The remaining Board Members receive a compensation when they do attend a scheduled meeting.

Discharge of the Board  Discharge the Board of Directors for their management during 201 0

Growth in membership Active Vested Annuitants Total amount participants participants of members 2003 1,024 123 0 1,147 2004 1,041 178 2 1,221 2005 1,238 135 3 1,373 2006 1,516 260 3 1,779 2007 1,736 329 6 2,071 2008 1,822 482 8 2,312 2009 1,967 683 12 2,662 2010 1,992 780 14 2,786

Growth in membership Total participants 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 2003 2004 2005 2006 2007 2008 2009 2010

Analysis Total Operational Year Contributions Assets Expenses 2003 1,967,165 9,974,272 308,688 2004 2,082,444 12,054,412 347,818 2005 2,164,406 13,527,215 359,435 2006 2,353,175 16,747,427 334,299 2007 2,686,407 19,123,705 492,605 2008 3,488,724 21,187,693 678,194 2009 3,847,457 22,105,379 683,687 2010 4,175,641 27,741,036 706,953

Point of view of the actuary: developments  Life expectancy increases => new mortality tables are needed Life expectancy of Men Women just-born child Old assumptions 75.5 years 82.1 years New assumptions 76.6 years 82.7 years  Provision for disability replaces reinsurance => PFTSA will save this premium

Point of view of the actuary: indexation  History: no indexation up till now, no indexation to be expected in future  General Assembly meeting 201 0: rules of Central Bank are applied for pension plan with no indexation  Now: formalization is needed

Proposed change DB plan- Article 14 sub a The calculation rate used for the DB plan is conform the set guidelines of the Central bank of Aruba (CBA). It was never the intention to provide indexation for the DB plan. This intention has never been made clear in the Rules & Regulations of the DB Plan. Based on the recommendations of our actuary ,we plan to change article 1 4 of the DB Rules & Regulation PFTSAARR9402 dated April 1 1 , 2002. Article 1 4: Indexation of accrued benefits At the end of each calendar year the Board of the Fund aims to increase the accrued benefit as of that date provided that the previous year operational result is sufficient to do so in relation to the overall financial position of the Fund as of that date. The Board of the Fund will only decide to do so after consulting the Actuary of the Fund. Any increase will be formalized by an indexation in terms of a percentage on the accrued pensions, being the accrued Retirement Pension and the accrued Partner Pension. To change in: Article 1 4: Adjustment of pension rights and pension benefits There will be no adjustments on pension rights and pension benefits. There is no ambition to give adjustments on pension rights and pension benefits. The participant and retirees must assume that they will receive no adjustments.

Proposed change DB plan- Article 14 sub a continued Method to inform the members of the change:  Through the GAM and  PFTSA web site. www.pftsa.com  Letter to participants and members

Objectives 2010/ 2011  Revise the articles of incorporation  Revise the Rules and Regulations  Revise the investment policy  Growth in membership/participant  To move the PFTSA office to a more suitable space/location Be the number one choice of employers and employees for the execution of their retirement plan.

Freeword

Closing  We thank you for your participation and attendance