Sun Life 2015 Annual Report Download - page 163

Medicare, and starting in April 2016, eligible existing and future retirees and covered dependents eligible for Medicare will receive an
annual contribution to a health reimbursement account to be applied against individual coverage and other eligible expenses.
26.A Risks Associated with Employee Defined Benefit Plans
With the closure of the material defined benefit pension and retiree benefit plans to new entrants, the volatility associated with future
service accruals for active members has been limited and will decline over time.
The major risks remaining in relation to past service obligations are increases in liabilities due to a decline in discount rates, greater life
expectancy than assumed and adverse asset returns. We continue to implement our plan to de-risk our defined benefit pension plans
Company-wide by systematically shifting the pension asset mix towards liability matching investments over the next few years. The
target for our material funded defined benefit plans is to minimize volatility in funded status arising from changes in discount rates and
exposure to equity markets.
26.B Defined Benefit Pension and Other Post-Retirement Benefit Plans
The following tables set forth the status of the defined benefit pension and other post-retirement benefit plans:
2015 2014
Pension
Other post-
retirement Total Pension
Other post-
retirement Total
Change in defined benefit obligations:
Defined benefit obligation, January 1 $ 3,202 $ 304 $ 3,506 $ 2,672 $ 262 $ 2,934
Current service cost 39 5 44 33 4 37
Interest cost 126 13 139 129 13 142
Actuarial losses (gains) 15 (18) (3) 445 29 474
Benefits paid (141) (13) (154) (119) (12) (131)
Curtailment losses (gains) –––(20) – (20)
Plan amendments – (30) (30) –––
Termination benefits 1–1–––
Foreign exchange rate movement 198 15 213 62 8 70
Defined benefit obligation, December 31 $ 3,440 $ 276 $ 3,716 $ 3,202 $ 304 $ 3,506
Change in plan assets:
Fair value of plan assets, January 1 $ 2,988 $ – $ 2,988 $ 2,583 $ – $ 2,583
Administrative expense (1) – (1) –––
Interest income on plan assets 117 – 117 125 – 125
Return on plan assets (excluding amounts
included in net interest expense) (50) – (50) 281 – 281
Employer contributions 84 13 97 71 12 83
Benefits paid (141) (13) (154) (119) (12) (131)
Curtailment losses (gains) –––(16) – (16)
Foreign exchange rate movement 196 – 196 63 – 63
Fair value of plan assets, December 31 $ 3,193 $ – $ 3,193 $ 2,988 $ – $ 2,988
Amounts recognized on Statement of Financial
Position:
Fair value of plan assets $ 3,193 $ – $ 3,193 $ 2,988 $ – $ 2,988
Defined benefit (obligation) (3,440) (276) (3,716) (3,202) (304) (3,506)
Net recognized (liability) asset, December 31 $ (247) $ (276) $ (523) $ (214) $ (304) $ (518)
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 161