Rogers 2010 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
108 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
Net pension expense is outlined below:
2010 2009
Plan cost:
Service cost $ 22 $ 21
Interest cost 39 43
Actual return on plan assets (48) (25)
Actuarial loss on benefit obligations 192 23
Settlement of pension obligations (d) –30
Costs $ 205 $ 92
Differences between costs arising during the year and costs recognized during the year in respect of:
Return (loss) on plan assets 10 (17)
Actuarial gain (186) (18)
Plan amendments/prior service cost 22
Amortization of transitional asset –(8)
Net pension expense $ 31 $ 51
The Company also provides supplemental unfunded pension benefits to
certain executives. The accrued benefit obligation relating to these
supplemental plans amounted to approximately $37 million at
December 31, 2010 (2009 – $31 million), and the related expense for
2010 was $4 million (2009 – $3 million). The accrued pension liability at
December 31, 2010 is $30 million (2009 – $29 million) (note 16).
(A) ACTUARIAL ASSUMPTIONS:
2010 2009
Weighted average discount rate used to determine accrued benefit obligations 5.60% 7. 20%
Weighted average discount rate used to determine pension expense 7.20% 6.75%
Weighted average rate of compensation increase used to determine accrued benefit obligations 3.00% 3.00%
Weighted average rate of compensation increase used to determine pension expense 3.00% 3.00%
Weighted average expected long-term rate of return on plan assets 7.0 0% 7.25%
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 8 to 11 years (2009 – 8 to 11 years).
Accrued benefit obligations are outlined below measured at September 30
for the year ended December 31:
2010 2009
Accrued benefit obligations, beginning of year $ 526 $ 622
Service cost 22 21
Interest cost 39 43
Benefits paid (34) (32)
Contributions by employees 21 21
Actuarial loss 192 23
Obligation being settled (d) –(172)
Accrued benefit obligations, end of year $ 766 $ 526