Shaw 2014 Annual Report Download - page 114

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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]
The tables below show the significant weighted-average assumptions used to measure the
pension obligation and cost for the plans.
Accrued benefit obligation
2014
SERP
%
2014
ERP
%
2013
SERP
%
2013
ERP
%
Discount rate 4.00 4.00 4.75 4.75
Rate of compensation increase 5.00(1) 3.00 5.00(1) 3.00
Benefit cost for the year
2014
SERP
%
2014
ERP
%
2013
SERP
%
2013
ERP
%
Discount rate 4.75 4.75 4.50 4.20
Rate of compensation increase 5.00(1) 3.00 5.00(1) 3.00
(1) Applies only to incentive compensation component of eligible pensionable earnings.
The calculation of the accrued benefit obligation is sensitive to the assumptions above. A one
percentage point decrease in the discount rate would have increased the accrued benefit
obligation at August 31, 2014 by $85. A one percentage point increase in the rate of
compensation increase would have increased the accrued benefit obligation by $16.
When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the present value of the defined benefit obligation has been calculated using the
projected benefit method which is the same method that is applied in calculating the defined
benefit liability recognized in the statement of financial position. The sensitivity analysis
presented above may not be representative of the actual change in the accrued benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one
another as some assumptions may be correlated.
The net pension benefit plan expense, which is included in employee salaries and benefits
expense, is comprised of the following components:
SERP
$
ERP
$
2014
Total
$
SERP
$
ERP
$
2013
Total
$
Current service cost 93 12 82 10
Past service cost –– – 4– 4
Interest cost 19 – 19 17 – 17
Interest income (15) – (15) (13) – (13)
Pension expense 13 3 16 16 2 18
Registered pension plans
The Company has a number of funded defined benefit pension plans which provide pension
benefits to certain unionized and non-unionized employees in the media business. Benefits
under these plans are based on the employees’ length of service and final average salary. These
plans are regulated by the Office of the Superintendent of Financial Institutions, Canada in
accordance with the provisions of the Pension Benefits Standards Act and Regulations. The
regulations set out minimum standards for funding the plans.
110