Rogers 2008 Annual Report Download - page 119

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 115
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Net pension expense is outlined below:
2008 2007
Plan cost:
Service cost $ 28 $ 29
Interest cost 40 34
Actual loss (return) on plan assets 83 (39)
Actuarial loss (gain) on benefit obligations (130) 10
Plan amendments – 10
Costs 21 44
Differences between costs arising during the year and costs recognized during the year in respect of:
Return (loss) on plan assets (127) 2
Actuarial loss (gain) 135 (4)
Plan amendments/prior service cost 2 (8)
Amortization of transitional asset (10) (10)
Net pension expense $ 21 $ 24
related expense for 2008 was $11 million (2007 – $2 million). The
accrued pension liability at December 31, 2008 is $26 million (2007 –
$15 million) (note 16).
The Company also provides supplemental unfunded pension
benefits to certain executives. The accrued benefit obligation
relating to these supplemental plans amounted to approximately
$27 million at December 31, 2008 (2007 – $24 million), and the
(A) ACTUARIAL ASSUMPTIONS:
2008 2007
Weighted average discount rate used to determine accrued benefit obligations 6.75% 5.65%
Weighted average discount rate used to determine pension expense 5.65% 5.25%
Weighted average rate of compensation increase used to determine accrued benefit obligations 3.00% 3.25%
Weighted average rate of compensation increase used to determine pension expense 3.25% 3.50%
Weighted average expected long-term rate of return on plan assets 7.00% 6.75%
Expected return on assets represents management’s best estimate
of the long-term rate of return on plan assets applied to the fair
value of the plan assets. The Company establishes its estimate of
the expected rate of return on plan assets based on the fund’s
target asset allocation and estimated rate of return for each asset
class. Estimated rates of return are based on expected returns
from fixed income securities which take into account bond yields.
An equity risk premium is then applied to estimate equity returns.
Differences between expected and actual return are included in
actuarial gains and losses.
The estimated average remaining service periods for the plans
range from 9 to 13 years. In 2008, a curtailment loss of $8 million
associated with the supplemental executive retirement plan was
recognized upon the death of one of the Company’s executives.
The Company did not have any curtailment gains or losses in 2007.