Workplace Safety & Prevention Services
Notes to Financial Statements
March 31, 2018
Workplace Safety & Prevention Services | 26
10 EMPLOYEE FUTURE BENEFITS
Defined benefit post-retirement plan
The Corporation provides extended health-care, dental and life insurance benefits to all employees with the cost of these
benefits recognized on an accrual basis. The most recently completed actuarial valuation was on March 31, 2017. The
continuity of the accrued benefit obligation relating to the post-retirement benefit plan is as follows:
2018
$
2017
$
Accrued benefit liability – Beginning of year 28,566,200 34,659,300
Current service cost 785,600 1,581,900
Interest cost on obligation 1,126,300 1,755,100
30,478,100 37,996,300
Actuarial loss (gain) 1,374,200 (8,560,100)
Benefit payments (804,000) (870,000)
Accrued benefit liability – End of year 31,048,300 28,566,200
Benefit plan expense
Current service cost 785,600 1,581,900
Interest on accrued benefit obligation 1,126,300 1,755,100
Net benefit plan expense 1,911,900 3,337,000
The significant actuarial assumptions adopted in measuring the Corporation's accrued benefit obligations are as follows:
2018
%
2017
%
Discount rate – net benefit cost 3.90 3.75
Discount rate - accrued obligation at year-end 3.60 3.90
Annual rates of increase
Extended health care 6.00%, decreasing by
0.25% per annum
to an ultimate
rate of 4.50%
6.00%, decreasing by
0.25% per annum
to an ultimate
rate of 4.50%
Dental care 2.75% per annum 2.75% per annum
Defined contribution pension plan
The employer contributions made in the year amounted to $3,265,891 (2017 - $3,961,202), which are included in employee
benefits.
