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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following information is provided on pension fund assets
measured at December 31, 2011 and 2010 for the years then ended:
Years ended December 31, 2011 2010
Plan assets, January 1 $ 652 $ 541
Expected return on plan assets 44 40
Actuarial gain (loss) recognized in equity (17) 21
Contributions by employees 20 21
Contributions by employer 8060
Benefits paid (27) (31)
Plan settlements (68)–
Plan assets, December 31 $684$ 652
The following information is provided on pension fund assets
measured at January 1, 2010, including the adjustments from the
previously disclosed September 30, 2009 measurement date under
Canadian GAAP:
January 1,
2010
Plan assets, measured at September 30, 2009 $ 518
Actuarial gain recognized in equity 10
Contributions by employees 6
Contributions by employer 15
Benefits paid (8)
Plan assets, January 1, 2010 $ 541
Accrued benefit obligations arising from funded obligations are
outlined below for the years ended December 31, 2011 and 2010:
Years ended December 31, 2011 2010
Accrued benefit obligations, January 1 $728$ 569
Service cost 36 25
Interest cost 44 40
Benefits paid (27) (31)
Contributions by employees 20 22
Actuarial loss recognized in equity 73 103
Plan settlements (57) –
Accrued benefit obligations, December 31 $817 $ 728
The following information is provided on accrued benefit obligations
measured at January 1, 2010 related to funded obligations including
the adjustments from the previously disclosed September 30, 2009
measurement date under Canadian GAAP:
January 1,
2010
Accrued benefit obligations, September 30, 2009 $ 526
Service cost 4
Interest cost 10
Benefits paid (9)
Contributions by employees 6
Actuarial loss recognized in equity 32
Accrued benefit obligations, January 1, 2010 $ 569
Net pension expense, which is included in employee salaries and
benefits expense, is outlined below:
Years ended December 31, 2011 2010
Plan cost:
Service cost $36 $25
Interest cost 44 40
Expected return on plan assets (44) (40)
Net pension expense 36 25
Plan settlements 11 –
Total pension cost recognized in the consolidated
statements of income $47 $25
The Company also provides supplemental unfunded pension benefits
to certain executives. The accrued benefit obligations relating to
these supplemental plans amounted to approximately $39 million at
December 31, 2011 (December 31, 2010 – $36 million; January 1,
2010 – $32 million), and the related expense for 2011 was $4 million
(2010 – $4 million). In connection with these plans, $1 million (2010 –
$2 million) of actuarial losses were recorded directly to OCI and
retained earnings.
Certain subsidiaries have defined contribution plans with total
pension expense of $2 million in 2011 (2010 – $2 million).
(a) Actuarial assumptions:
December 31,
2011 December 31,
2010 January 1,
2010
Weighted average discount rate used to determine accrued benefit obligations 5.5%5.9% 6.9%
Weighted average discount rate used to determine pension expense 6.0%6.9% N/A
Weighted average rate of compensation increase used to determine accrued benefit obligations 3.0%3.0% 3.0%
Weighted average rate of compensation increase used to determine pension expense 3.0%3.0% N/A
Weighted average expected long-term rate of return on plan assets 6.8% 7.0% 7.0%
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.
118 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT