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Highlights – Board Meeting of 19 September 2018

08-Nov-2018

The Board noted that the document under consideration is a proposal for a hybrid system that has the characteristics of both the defined benefit and defined contribution schemes. The aim of the hybrid system is to further strengthen the financial viability of the pension plan and to share the risks between the Bank and employees. Board members supported the proposal and requested that management reflect on the ways and means of further strengthening the long-term financial viability of the Staff Retirement Plan. They underscored the need for Management to ensure efficient communication with staff on the new plan and to assist them in the choice of investments that offer considerable returns over the medium to long terms. Finally, Executive directors invited Management to increase the percentage of investment in Africa, to avoid any mention of change of retirement age at this stage and to update the Board on the implementation of the hybrid retirement plan. At the end of the deliberations, the Board approved the reform of the Staff Retirement Plan with a view to setting up a hybrid pension scheme with defined benefit and defined contribution. The new plan is expected to become effective on January 1, 2019, after the current document would have been revised to reflect the new hybrid system, and then approved by the Board on a lapse-of-time basis

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