International Monetary Fund Annual Report 2019 Financial Statements

International Monetary Fund

• Publisher: INTERNATIONAL MONETARY FUND
• Year: 2019
• eBook ISBN: 9781513511726

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II. Financial Statements of the SDR Department

SCHEDULE 5: Schedule of Effective Bilateral Borrowing Agreements in the General Resources Account at April 30, 2019, and 2018

Components may not sum exactly to totals because of rounding.

10. Property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets, net of depreciation and amortization, amounted to SDR 537 million and SDR 494 million at April 30, 2019, and 2018, respectively, and consisted of land, buildings, equipment, furniture, and software.

Other property, plant and equipment included construction in progress of SDR 22 million at April 30, 2019 (SDR 27 million at April 30, 2018), related to the renovation of the IMF headquarters building. At April 30, 2019, the IMF had commitments of SDR 13 million for the renovation of the IMF headquarters building (SDR 41 million at April 30, 2018).

Depreciation and amortization expense of SDR 38 million and SDR 33 million is included in administrative expenses for the financial years ended April 30, 2019, and 2018, respectively.

11. Employee benefits

11.1 Overview of the Plans

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers all eligible staff and a Supplemental Retirement Benefits Plan (SRBP) for a subset of participants of the SRP. The SRBP provides for the payment of benefits that otherwise would have been payable had the U.S. qualified plan benefits and compensation limits not applied. Participants in the SRP and SRBP (the pension plans) are entitled to unreduced annual pensions beginning at the normal retirement age of 62 or earlier if certain conditions of age and service are met. The mandatory retirement age is 65. The pension plans also provide an option for eligible staff to receive reduced pension benefits beginning at the age of 50. The level of pension benefits depends on the participants’ length of service and highest three-year average gross compensation. Participants may also elect upon retirement to commute up to one-third of the lifetime pension benefits into a lump-sum payment.

The IMF provides other non-pension long-term benefits, including medical insurance, life insurance, separation and repatriation benefits, accrued annual leave up to 60 days, and associated tax allowances. The IMF has established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of certain of these post-retirement benefits.

The assets in the SRP, SRBP, and RSBIA (collectively, the Plans) are held separately from the assets of all other accounts of the IMF. In the event the IMF were to exercise its right to terminate the Plans, the assets of these plans would be used to satisfy all liabilities to participants, retired participants, and their beneficiaries, and all other liabilities of the pension plans. Any remaining assets would be returned to the GRA. The GRA meets the costs of administering the Plans, and the SRP and RSBIA reimburse the GRA for investment-related costs.

The Executive Board and the Pension Committee are responsible for the governance of the Plans. The Executive Board approves the funding framework and amendments to the Plans. The Pension Committee, consisting of members of the Executive Board and senior staff, has overall responsibility for carrying out the provisions of the SRP and the SRBP. The Pension Committee also undertakes periodic valuations of the assets and liabilities related to the Plans, and advises the Executive Board on the appropriate funding framework. It is supported by an Investment Committee to oversee the investments of the Plans.

11.2 Net defined benefit asset/liability and benefit costs

The amounts recognized in the statements of financial position were as follows:

The amounts recognized in the statements of comprehensive income were as follows:

The reconciliation of the defined benefit obligation was as follows:

The reconciliation of changes in the fair value of plan assets was as follows:

The fair value of major categories of plan assets was as follows:

Participants in the pension plans contribute a fixed 7 percent of pensionable gross compensation. The actuarially determined employer contributions to the pension plans during the financial year ended April 30, 2019 amounted to 8.73 percent of pensionable gross compensation (6.08 percent of pensionable gross compensation during the financial year ended April 30, 2018). Under the IMF’s funding framework, the budgetary allocations for payments to the pension plans have been set at 14 percent of pensionable gross compensation. The IMF expects to contribute SDR 145 million to the Plans during the financial year ending April 30, 2020.

The expected pension and benefits payments to be paid out by the Plans over the next five years were as follows at April 30, 2019:

11.3 Principal actuarial assumptions

The IMF conducts a comprehensive analysis of the principal actuarial assumptions used in calculating the net defined benefit asset/liability every five years and reviews their applicability on an annual basis. The most recent five-year analysis was completed in January 2016, and the principal actuarial assumptions were revised.

The principal actuarial assumptions used in the actuarial valuation were as follows:

The assumed retirement rate ranges from 5 percent at age 50 to 100 percent at age 65, and the assumed participation rate for medical benefits upon retirement is 85 percent.

The weighted average duration of the defined benefit obligation was 18.1 years as at April 30, 2019 (17.9 years as at April 30, 2018).

The following shows the sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions at April 30, 2019:

The sensitivity analyses are based on a change in one assumption, while holding all other assumptions constant, so that the effects of correlation between the assumptions are excluded.

12. Other assets and liabilities

Other assets comprised the following:

Other liabilities comprised the following:

13. Burden sharing and the Special Contingent Account

The IMF has adopted the burden sharing mechanism to cope with the financial consequences of member countries’ failure to settle financial obligations to the GRA on time. Under the burden sharing mechanism, resources are generated by increasing the rate of charge and reducing the rate of remuneration to cover shortfalls in the GRA’s income due to the nonpayment of charges. The burden sharing mechanism has also financed additions to the SCA-1, which offers protection against the risk of loss resulting from the ultimate failure of a member to repay its overdue obligations to the

GRA.

Members that participated in burden sharing for overdue charges receive refunds to the extent that these charges are subsequently settled. Contributions to the SCA-1 are returned when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide.

Overdue charges, net of settlements, that have resulted in adjustments to charges and remuneration for the year ended April 30, 2019 amounted to SDR 5 million (SDR 4 million for the year ended April 30, 2018). Cumulative overdue charges, net of settlements, that have resulted in adjustments to

charges and remuneration since May 1, 1986 (the date the burden sharing mechanism was adopted) amounted to SDR 727 million at April 30, 2019 (SDR 722 million at April 30, 2018). The cumulative refunds for the same period, resulting from the settlements of overdue charges for which burden sharing adjustments have been made, amounted to SDR 1,320 million at April 30, 2019, and 2018.

The SCA-1 balance amounted to SDR 1,188 million at April 30, 2019, and 2018. Effective November 1, 2006, the Executive Board decided to suspend, for the time being, further additions to the SCA-1. Accordingly, no additions have been made to the SCA-1 during the financial years ended April 30, 2019, and 2018.

14. Borrowings

The GRA can borrow to temporarily supplement its quota resources. The Executive Board has established guidelines on borrowing by the GRA to ensure that the financing of the GRA is managed in a prudent and systemic manner.

The GRA’s main standing borrowing arrangement is the New Arrangements to Borrow (NAB). The GRA may also borrow under bilateral agreements, in particular loan and note purchase agreements (bilateral borrowing agreements). At April 30, 2019, the NAB credit arrangements amounted to SDR 181 billion and the bilateral borrowing agreements amounted to SDR 317 billion; see Schedules 4 and 5.

At April 30, 2018, the GRA also had the General Arrangements to Borrow (GAB), and an associated agreement with Saudi Arabia, both of which expired on December 25, 2018.

14.1 New Arrangements to Borrow

The NAB is a standing set of credit arrangements with 40 participants, of which 38 agreements were effective at April 30, 2019, and 2018. The NAB provides supplementary resources to the GRA as a second line of defense, when quota resources representing the first line of defense need to be supplemented in order to forestall or cope with an impairment of the international m...

Table of contents

• Cover Page
• Title Page
• Contents
• Copyright Page
• I. Financial Statements of the General Department
• II. Financial Statements of the SDR Department
• III. Financial Statements of the Concessional Lending and Debt Relief Trusts
• IV. Financial Statements of the Administered Accounts