Air Canada 2009 Annual Report Download - page 115

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Consolidated Financial Statements and Notes
115
The net benefi t obligation is recorded in the statement of fi nancial position is as follows:
2009 2008
Pension benefi ts $ 120 $ 540
Other employee future benefi ts 1,109 1.111
Net benefi t obligation 1,229 1,651
Current portion (66) (66)
Pension and other benefi t liabilities $ 1,163 $ 1,585
The current portion of the net benefi t obligation represents an estimate of other employee future benefi ts claims to be
incurred during 2010. The current portion is included in Accounts payable and accrued liabilities.
Pension and Other Employee Future Benefi t Expense
The Corporation has recorded net defi ned benefi t pension and other employee future benefi ts expense as follows:
Pension Benefi ts Other Employee Future Benefi ts
2009 2008 2009 2008
Components of Net Periodic Pension Cost
Current service cost $ 123 $ 203 $ 50 $ 62
Interest cost 760 706 54 52
Actual loss (return) on plan assets (1,296) 1,879 - -
Actuarial loss (gain) 1,015 (1,738) 33 (189)
Plan amendments - 2 - -
Costs arising in the year 602 1,052 137 (75)
Differences between costs arising in the year
and costs recognized in the year in respect of:
Loss (return) on plan assets 460 (2,711) - -
Actuarial loss (gain) (1,068) 1,742 (62) 172
Plan amendments - (2) - -
Increase in valuation allowance provided
against accrued benefi t asset 6 8 - -
Net periodic benefi t cost of plans - 89 75 97
Amount charged to ACE, Aveos, and Aeroplan (20) (24) (12) (16)
Net defi ned benefi t pension and other employee
benefi ts expense $ (20) $ 65 $ 63 $ 81
Weighted average assumptions used to determine
the accrued benefi t cost
Discount rate 7.35 % 5.75 % 6.25 - 7.35 % 5.75 - 6.00 %
Expected long-term rate of return on plan assets 7.15 % 7.15 % n/a n/a
Rate of compensation increase (1) 2.50 % 2.50 %
(1) A rate of compensation increase of 0% plus merit in 2009 and in 2010 was used in determining the net benefi t pension expense and 2.50% plus merit for the
remaining years.