Corporate

2014 annual report  |  Workplace Safety & Prevention Services 28 Workplace Safety & Prevention Services Notes to Financial Statements December 31, 2014 14. EMPloyEE FuturE bENEFits 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 under the CPA Canada Handbook – Accounting section 3463. The accrued benefit obligation relating to post retirement benefit plans as at December 31 is as follows: 2014 2013 (Note 2) Accrued benefit liability, beginning of year $ 41,220,900 $ 39,655,500 Current service cost 1,411,600 1,538,800 Interest cost on obligation 2,117,400 1,636,400 44,749,900 42,830,700 Cumulative amounts recognized in the statement of changes in net assets (6,314,300) (1,039,800) Benefit payments (632,000) (570,000) Accrued benefit liability, end of year $ 37,803,600 $ 41,220,900 benefit plan expense Current service cost $ 1,411,600 $ 1,538,800 Interest on accrued benefit obligation 2,117,400 1,636,400 Net benefit plan expense $ 3,529,000 $ 3,175,200 The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligations are as follows: Discount rate – net benefit cost 5.0% (2013 – 4.0%) Discount rate – accrued obligation at year-end 4.0% (2013 – 5.0%) Annual rates of increase: Extended health care 7.5%, decreasing by 0.25% per annum to an ultimate rate of 5.00% Dental care 4.0% (2013 – 4.0%) per annum 15. CoNtributED surPlus On January 1, 2001 the former FSA became self-administered and the value of assets previously recorded as expenditures and funded by the WSIB was recorded as contributed surplus. 16. iNtErNally rEstriCtED FuND For CHsi CaPital ExPENDiturEs The Board approved setting up an internally restricted fund at December 31, 2012 for the Association's share of future capital expenditures relating to CHSI. The fund was designated based on a reserve fund study performed on CHSI in 2011. In the current year, the Association allocated $118,389 (2013 – $378,957) to this fund. These amounts represent the Association's share of CHSI's replacement reserve and unrestricted net assets. 17. iNtErNally rEstriCtED For loNg tErM PlaNs The Board approved setting up an internally restricted fund at December 31, 2012 to fund certain commitments and long term plans and activities. In the current year, the Association allocated $Nil (2013 – $Nil) to this fund and transferred $420,320 to unrestricted net assets (2013 – $33,941 to unrestricted net assets).

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