Page 45 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 26. Employee Benefit Obligations (a) Pension plan The University has established a contributory pension plan, University of Technology, Jamaica (2006) Pension Plan, for all eligible employees. The plan is under the control of trustees appointed by the University, with the assets being held separately from those of the University. The rules of the plan require the establishment of a fund to which each member must contribute 5% of earnings and may contribute up to an additional 10% of earnings, and the employer must contribute 5% of earnings and may make such other contributions as may be recommended by the actuary to improve the solvency of the fund, provided such contributions are permissible under relevant laws and regulations. The pension payable on normal retirement is the normal form of annuity which may be purchased with the member’s account (the accumulated member and employer contributions plus earnings thereon) up to retirement date, subject to a maximum pension of two-thirds of the member’s annual earnings at retirement date, provided that the member has completed 33 1/3 years of service. The rules also provide for optional forms of pension and for benefits on early retirement. During the year, the contributions by the University to the fund established under the rules of the plan aggregated to $214,821,000 (2019 - $127,245,000). (b) Medical care In addition to pension benefits, the University offers post-employment medical benefits. The latest actuarial valuation was done as at 31 March 2019. The liability recognised in the statement of financial position was determined as follows: 2020 2019 $’000 $’000 Present value of unfunded obligations 1,666,567 1,033,848 University of Technology, Jamaica 161
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