2015
ANNUAL
REPORT
|
Workplace
Safety
&
Prevention
Services
27
Ahead of the Curve | WSPS.CA/AnnualReport
Workplace Safety & Prevention Services
Notes to Financial Statements
December 31, 2015
10. EMPLOYEE FUTURE BENEFITS
Defined benefit post-retirement plan
The Association 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 completed on June 30,
2015. The continuity of the accrued benefit obligation relating to the post-retirement benefit plan is as follows:
2015 2014
Accrued benefit liability – Beginning of year $ 37,803,600 $ 41,220,900
Current service cost 1,758,800 1,411,600
Interest cost on obligation 1,565,600 2,117,400
41,128,000 44,749,900
Actuarial gain (238,800) (6,314,300)
Plan amendment (5,623,900) —
Benefit payments (606,000) (632,000)
Accrued benefit liability – End of year $ 34,659,300 $ 37,803,600
Benefit plan expense
Current service cost 1,758,800 1,411,600
Interest on accrued benefit obligation 1,565,600 2,117,400
Net benefit plan expense $ 3,324,400 $ 3,529,000
The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligations are as follows:
2015 2014
% %
Discount rate – net benefit cost 4.0 5.0
Discount rate – accrued obligation at year-end 4.0 4.0
Annual rates of increase
Extended health care 7.5%, decreasing by
0.25% per annum
to an ultimate
rate of 5.00
7.5%, decreasing by
0.25% per annum
to an ultimate
rate of 5.00
Dental care 4.0% per annum 4.0% per annum
Defined contribution pension plan
Employees belong to the WSIB Employee's Superannuation Plan, a defined contribution plan with employer contributions
in the year amounting to $2,784,261 (2014 - $2,744,271) and are included in employee benefits.
