Air Canada 2006 Annual Report Download - page 95

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9. PENSION AND OTHER BENEFIT LIABILITIES
The Corporation maintains several defined benefit and defined contribution plans providing pension, other
retirement and post-employment benefits to its employees, including those employees of the Corporation who
are contractually assigned to ACTS and Aeroplan.
The Corporation is the administrator and sponsoring employer of ten Domestic Registered Plans ("Domestic
Registered Plans") under the Pension Benefits Standard Act, 1985 (Canada). The US plan, UK plan and Japan
plan are international plans covering employees in those countries. In addition, the Corporation maintains a
number of supplementary pension plans, which are not registered. The defined benefit pension plans provide
benefits upon retirement, termination or death based on the member's years of service and final average
earnings for a specified period.
The other employee benefits consist of health, life and disability. These benefits consist of both post-
employment and post-retirement benefits. The post-employment benefits relate to disability benefits available to
eligible active employees, while the post-retirement benefits are comprised of health care and life insurance
benefits available to eligible retired employees.
Certain Corporation employees perform work for ACE and others are contractually assigned to ACTS and
Aeroplan. These employees are members of Corporation sponsored defined benefit pension plans and also
participate in Corporation-sponsored health, life and disability future benefit plans. These combined
consolidated financial statements include all of the assets and liabilities of all Corporation sponsored plans. The
employee benefit expense in these combined consolidated financial statements includes the expenses for all
employees participating in the plans less a cost recovery which is charged to the related parties for those
employees assigned. The cost recovery related to pension and other benefit liabilities amounted to $56 for the
year ended December 31, 2006 (2005 - $51).
In 2005, the measurement date used for financial reporting of the pension and other benefit obligations was
revised to November 30 from December 31.
95
Combined Consolidated Financial Statements 2006