Workplace Safety & Prevention Services
Notes to Financial Statements
December 31, 2013
2013 2012
Accrued benefit obligation, beginning of year $39,655,500 $ 28,694,000
Actuarial loss due to change in discount rate — 5,160,900
Actuarial loss (gain) (1,039,800) 3,412,100
Current service cost 1,538,800 1,273,400
Interest cost on obligation 1,636,400 1,565,100
41,790,900 40,105,500
Benefit payments (570,000) (450,000)
Accrued benefit obligation, end of year 41,220,900 39,655,500
Funded status – plan deficit 41,220,900 39,655,500
Unamortized past service costs (1,993,100) (2,226,300)
Unamortized net actuarial losses (17,344,800) (19,586,200)
Accrued benefit liability $21,883,000 $ 17,843,000
Benefit plan expense
Current service cost $ 1,538,800 $ 1,273,400
Interest on accrued benefit obligation 1,636,400 1,565,100
Amortization of actuarial losses 1,201,600 1,065,700
Amortization of past service costs 233,200 233,200
Net benefit plan expense $ 4,610,000 $ 4,137,400
The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligations are as follows:
Discount rate – net benefit cost 4.0% (2012 – 4.5%)
Discount rate – accrued obligation at year-end 5.0% (2012 – 4.0%)
Annual rates of increase:
Extended health care 8.5% in 2014, decreasing by 0.5%
per annum to 5.00% in 2021
Dental care 4.0% (2012 – 4.0%) per annum
14. EMPLoyEE fUtUrE BENEfItS
(continued)
33
2013
annual
report
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Workplace
Safety
&
Prevention
Services
