Caribbean Utilities Company, Ltd.  2011  Annual Report Notes to Financial Statements 52 (Expressed in thousands of United States dollars) Pension Plan 2011 2010  Accrued Benefit Obligation Balance beginning of year  5,885  5,232  Interest cost  321 311  Actuarial (gains)/losses  996 443 Benefit payments  (79) (101) Balance end of year  7,123 5,885  Plan Assets  Fair value, beginning of year  4,217 3,168 Actual return on plan assets  (269) 705 Employer contributions to plan  445 445 Benefit payments  (79) (101) Fair value, end of year  4,314 4,217 Funded Status - deficit  (2,811) (1,670) Unamortized past service costs  579 828 Unamortized net actuarial loss  2,168 723 Accrued Benefit Liability  (64)  (119)  The Company’s defined benefit pension plan asset allocation was as follows:  Equities  41% 51% Money market funds  18% 7% Fixed income  39% 37% Cash  2% 5% 100% 100% During the year ended December 31, 2011, $0.4 million (December 31, 2010: $0.5 million) was recorded as compensation expense, which comprises the following:  Interest cost  321 311 Expected return on plan assets  (221) (168) Amortization of past service costs  249 248 Amortization of actuarial losses  40 88  388 479  Significant assumptions used:  Discount rate during year (%)  5.50 6.00 Discount rate at year end (%)  4.50 5.50 Rate of compensation increase (%)  3.00 3.00 Expected long-term rate of return on plan assets (%)  5.00 5.00 Average remaining service period (years)  2.00 3.00