Shaw 2014 Annual Report Download - page 113

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2014 and 2013
[all amounts in millions of Canadian dollars except share and per share amounts]
During fiscal 2013, the Company established an executive retirement plan (“ERP”) for certain
executives not covered by the SERP. Benefits under this plan are comprised of defined
contribution and defined benefit components and are based on the employees’ length of service
as well as final average earnings during their years of service. Employees are not required to
contribute to this plan. Annually the employer is to fund 90% of the accrued benefit obligation.
Subsequent to year end, the Company made contributions of $2 to an RCA.
The table below shows the change in benefit obligation and funding status and the fair value of
plan assets.
SERP
$
ERP
$
2014
Total
$
SERP
$
ERP
$
2013
Total
$
Accrued benefit obligation, beginning of year 404 2 406 378 – 378
Current service cost 93 12 82 10
Past service cost –– – 4– 4
Interest cost 19 – 19 17 – 17
Payment of benefits to employees (10) – (10) (9) – (9)
Remeasurements:
Effect of changes in demographic assumptions 1– 112 – 12
Effect of changes in financial assumptions 51 1 52 (15) – (15)
Effect of experience adjustments 13 – 13 9– 9
Accrued benefit obligation, end of year 487 6 493 404 2 406
Fair value of plan assets, beginning of year 302 – 302 –– –
Employer contributions 13 2 15 300 – 300
Interest income 15 – 15 13 – 13
Payment of benefits (10) – (10) (9) – (9)
Return on plan assets, excluding interest income 8– 8 (2) – (2)
Fair value of plan assets, end of year 328 2 330 302 – 302
Accrued benefit liability and plan deficit, end of year 159 4 163 102 2 104
The weighted average duration of the defined benefit obligation of the SERP and ERP at
August 31, 2014 is 15.9 years and 23.4 years, respectively.
The underlying plan assets of the SERP and ERP at August 31, 2014 are invested in the
following:
SERP
$
ERP
$
Cash and cash equivalents 163 1
Fixed income securities 90 –
Equity securities – Canadian 24 –
Equity securities – Foreign 51 1
328 2
All fixed income and equity securities have a quoted price in active market.
109