Air Canada 2008 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 of the 2008 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

2008 Air Canada Annual Report
116
The net benefit obligation recorded in the statement of financial position is as follows:
2008 2007
Pension benefits $ 540 $ 894
Other employee future benefits 1,111 1.043
Netbenetobligation 1,651 1,937
Current portion (244) (113)
Pensionandotherbenetliabilities $ 1,407 $ 1,824
The current portion of pension benefits represents past service contributions for the Domestic Registered Plans, scheduled
to be paid during 2009 while the current portion of other employee future benefits is an estimate of the claims to be
incurred during 2009. The current portion is included in Accounts payable and accrued liabilities.
Total cash payments for 2008, consisting of cash contributed by the Corporation to its defined benefit plans, cash payments
to beneficiaries for post-employment and post-retirement plans, and cash contributed to its defined contribution plans
were $514 (2007 - $428).
Pension and Other Employee Future Benefit Expense
The Corporation has recorded net defined benefit pension and other employee future benefits expense as follows:
Pension Benefits Other Employee Future Benefits
2008 2007 2008 2007
Components of Net Periodic Pension Cost
Current service cost $ 203 $ 254 $ 62 $ 69
Interest cost 706 649 52 49
Actual return on plan assets 1,879 (148) - -
Actuarial gain (1,738) (1,278) (189) (119)
Plan amendments 2 - - -
Other benefits - 2 - -
Costs arising in the year 1,052 (521) (75) (1)
Differencesbetweencostsarisingintheyear
 andcostsrecognizedintheyearinrespectof:
Return on plan assets (2,711) (622) - -
Actuarial loss 1,742 1,285 172 103
Plan amendments (2) - - -
Increase in valuation allowance provided
against accrued benefit asset 8 1 - -
Netperiodicbenetcostofplans 89 143 97 102
Amount charged to ACE, Aveos, and Aeroplan (24) (23) (16) (17)
Netdenedbenetpensionandotheremployee
 benetsexpense(1) $ 65 $ 120 $ 81 $ 85
Weighted average assumptions used to determine
 theaccruedbenetcost
Discount rate 5.75 % 5.00 % 5.75 - 6.00 % 5.00 - 5.50 %
Expected long-term rate of return on plan assets 7.15 % 7.15 % n/a n/a
Rate of compensation increase (2) 2.50 % 2.50 %
(1) Includes nil of Pension Benefits related to Jazz (2007 - $4), which was consolidated until May 24, 2007 under AcG-15.
(2) A rate of compensation increase of 1.75% in 2007 and in 2008 was used in determining the net benefit pension expense and 2.50% for the remaining years.