Notes to the Consolidated Financial Statements
Years ended December 31, 2008 and 2007 (In thousands of dollars, except per share amounts)
9. Employee future benefits:
Information about the Company’s benefit plans is as follows:
Total cash amounts recognized as paid or payable for employee future benefits in 2008, consisting of employer contributions to the defined benefit pension plans, employer contributions to the other benefit plans, and employer contributions to the defined contribution plans, was $5,697 (2007 – $5,366).
Defined benefit plans:
Commencing January 1, 2004, the Company, excluding MX, measures its accrued benefit obligations and the fair value of plan assets for accounting purposes as at September 30 of each year. The measurement date for MX plan assets and accrued benefit obligations is December 31 of each year. For the Company, excluding MX, the most recent actuarial valuation of the registered pension plan for funding purposes was as at December 31, 2005, and the next required valuation is as at December 31, 2008. For the RCA plan, the most recent actuarial valuation for funding purposes was as at December 31, 2007, and the next required valuation is as at December 31, 2008. For the MX plan, the most recent actuarial valuation for funding purposes was at January 1, 2007 and the next required valuation will be as at January 1, 2010.
| Pension and RCA plans | Other benefit plans | |||||||
| As at December 31 | 2008 | 2007 | 2008 | 2007 | ||||
| Accrued benefit obligation: | ||||||||
| Balance, beginning of year | $ | 55,714 | $ | 54,119 | $ | 9,215 | $ | 12,954 |
| Benefit obligation acquired with MX | 2,001 | - | - | - | ||||
| Current service cost | 2,023 | 2,003 | 763 | 1,200 | ||||
| Interest cost | 3,295 | 2,944 | 559 | 692 | ||||
| Benefits paid | (2,755) | (1,962) | (168) | (163) | ||||
| Employee contributions | 264 | 290 | - | - | ||||
| Actuarial gains | (9,249) | (1,854) | (1,540) | (535) | ||||
| Plan amendments | - | - | - | (4,933) | ||||
| Net transfers in | - | 174 | - | - | ||||
| Balance, end of year | 51,293 | 55,714 | 8,829 | 9,215 | ||||
| Pension and RCA plans | Other benefit plans | |||||||
| As at December 31 | 2008 | 2007 | 2008 | 2007 | ||||
| Plan assets: | ||||||||
| Fair value, beginning of year | $ | 57,948 | $ | 52,777 | $ | - | $ | - |
| Plan assets acquired with MX | 330 | - | - | - | ||||
| Actual return on plan assets | (5,106) | 3,284 | - | - | ||||
| Employer contributions | 3,377 | 3,424 | 168 | 163 | ||||
| Employee contributions | 264 | 290 | - | - | ||||
| Benefits paid | (2,755) | (1,962) | (168) | (163) | ||||
| Net transfers in | - | 135 | - | - | ||||
| Fair value, end of year | $ | 54,058 | $ | 57,948 | $ | - | $ | - |
| Funded status-plan surplus (deficit) | $ | 2,765 | $ | 2,234 | $ | (8,829) | $ | (9,215) |
| Unamortized net actuarial loss | 5,644 | 6,669 | 190 | 1,778 | ||||
| Employer contributions after | ||||||||
| measurement date | 667 | 416 | 42 | 41 | ||||
| Unamortized transitional obligation | 13 | 27 | - | - | ||||
| Unamortized past service costs | 542 | 254 | (4,319) | (4,717) | ||||
| Accrued benefit asset (liability) | $ | 9,631 | $ | 9,600 | $ | (12,916) | $ | (12,113) |
| The accrued benefit assets and accrued benefit obligations are included in the Company’s consolidated balance sheet as follows: | ||||||||
| Pension and RCA plans | Other benefit plans | |||||||
| As at December 31 | 2008 | 2007 | 2008 | 2007 | ||||
| Other assets | $ | 9,631 | $ | 9,600 | $ | - | $ | - |
| Accrued employee benefits payable | - | - | (12,916) | (12,113) | ||||
| Total | $ | 9,631 | $ | 9,600 | $ | (12,916) | $ | (12,113) |
| Plan assets consist of: | ||||||||
| Asset category | Percentage of plan assets | |||||||
| 2008 | 2007 | |||||||
| Equity securites | 47% | 52% | ||||||
| Debt securities | 39% | 34% | ||||||
| Canada Revenue Agency | ||||||||
| refundable tax account | 14% | 14% | ||||||
| 100% | 100% | |||||||
