Corporate

2014 annual report  |  Workplace Safety & Prevention Services 30 Workplace Safety & Prevention Services Notes to Financial Statements December 31, 2014 21. PENsioN PlaN Employees belong to the WSIB Employee's Superannuation Plan, a defined contribution plan with employer contributions in the year amounting to $2,744,271 (2013 – $2,679,806) and are included in employee benefits. 22. rElatED Party traNsaCtioNs The Association subleases its premises from Centre for Health & Safety Innovation (CHSI) and pays their proportionate rental area share of the operating costs. Any surplus (deficiency) in CHSI will be shared by the members based on their proportionate share of equity (see also Note 7). During the year, CHSI charged rental and operating costs of $2,810,914 (2013 – $2,764,090). These transactions are in the normal course of business, and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties, and approximates the arm's length equivalent value. Minimum annual rental lease payments are as follows: year amount 2015 $ 1,347,000 2016 1,347,000 2017 1,347,000 2018 1,408,000 2019 1,421,000 Thereafter 1,657,000 $ 8,527,000 Amounts not specifically disclosed on the balance sheet: 2014 2013 Trade accounts receivable $ 6,644 $ 6,732 Trade accounts payable $ 1,680 $ 2,422 During the year, the Association charged CHSI bookkeeping and information technology service fees of $72,000 (2013 – $34,800). This amount is measured at the exchange amount (the amount of consideration agreed to by the related parties). 23. FuNDiNg aND NEt assEts The MOL's "Surplus Investment Policy" with an effective date of September 18, 2013 was adopted by the Association. The policy states that the Association's operations are not to result in a deficit position at the end of any government fiscal year. The amount of surplus that is eligible to be retained by the Association will be a maximum of 6% of the previous year's audited total actual revenue including government transfer payments. Any amount in excess of the 6% maximum amount may be recovered by MOL in the following year through reduction of transfer payment funding. Surplus funds must be used to support MOL's commitment to enhance health and safety in Ontario workplaces. No surplus funds can be used without written approval from MOL. MOL will notify the Association in writing in a timely manner regarding decisions related to proposed retention of surpluses. The use of surplus funds approved to be retained by the Association will be tracked by the Association and reported to MOL. Any amount not approved to be retained will be recovered by MOL.

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