Telus 2010 Annual Report Download - page 149

TELUS 2010 annual report . 145
Other defined benefit pension plans: In addition to the foregoing
plans, the Company has non-registered, non-contributory supplementary
defined benefit pension plans which have the effect of maintaining the
earned pension benefit once the allowable maximums in the registered
plans are attained. As is common with non-registered plans of this
nature, these plans are funded only as benefits are paid.
The Company has three contributory, non-indexed pension plans
arising from a pre-merger acquisition which comprise less than 1%
of the Company’s total accrued benefit obligation; these plans ceased
accepting new participants in September 1989.
Other defined benefit plans: Other defined benefit plans, which
are all non-contributory, are comprised of a disability income plan,
a healthcare plan for retired employees and a life insurance plan.
The healthcare plan for retired employees and the life insurance plan
ceased accepting new participants effective January 1, 1997. In con-
nection with the collective agreement signed in 2005, an external
supplier commenced providing a new long-term disability plan effective
January 1, 2006. The existing disability income plan will continue
to provide payments to previously approved claimants and qualified
eligible employees.
Telecommunication Workers Pension Plan: Certain employees
in British Columbia are covered by a negotiated-cost, target-benefit
union pension plan. Contributions are determined in accordance
with provisions of negotiated labour contracts and are generally based
on employee gross earnings.
British Columbia Public Service Pension Plan: Certain employees
in British Columbia are covered by a public service pension plan.
Contributions are determined in accordance with provisions of labour
contracts negotiated by the Province of British Columbia and are
generally based on employee gross earnings.
Defined contribution pension plan: Effective January 1, 2007, the
Company offered one defined contribution pension plan, which is
contributory, and is the only Company-sponsored pension plan avail-
able to non-unionized and certain unionized employees joining the
Company after that date. Generally, employees can annually choose to
contribute to the plan at a rate of between 3% and 6% of their pension-
able earnings. The Company will match 100% of the contributions
of the employees up to 5% of their pensionable earnings and will match
80% of employee contributions greater than that. Membership in the
defined contribution pension plan is voluntary until an employee’s
third year service anniversary. In the event that annual contributions
exceed allowable maximums, excess amounts are contributed
to a non-registered supplementary defined contribution pension plan.
The Company has a number of defined benefit and defined contri-
bution plans providing pension, other retirement and post-employment
benefits to most of its employees. Other benefit plans include a
TELUS Québec Inc. retiree healthcare plan. The benefit plan(s) in which
an employee is a participant reflects the general development of
the Company.
Pension Plan for Management and Professional Employees of
TELUS Corporation: This defined benefit pension plan, which ceased
accepting new participants on January 1, 2006, and which comprises
approximately one-quarter of the Company’s total accrued benefit
obligation, provides a non-contributory base level of pension benefits.
Additionally, on a contributory basis, employees can annually choose
increased and/or enhanced levels of pension benefits over the base level
of pension benefits. At an enhanced level of pension benefits, the defined
benefit pension plan has indexation of 100% of a specified cost-of-living
index, to an annual maximum of 2%. Pensionable remuneration is deter-
mined by the annualized average of the best sixty consecutive months.
TELUS Corporation Pension Plan: Management and professional
employees in Alberta who joined the Company prior to January 1, 2001,
and certain unionized employees are covered by this contributory defined
benefit pension plan, which comprises slightly more than one-half of
the Company’s total accrued benefit obligation. The plan contains a
supplemental benefit account which may provide indexation up to 70%
of the annual change of a specified cost-of-living index and pensionable
remuneration is determined by the average of the best five years in
the last ten years preceding retirement.
TELUS Québec Defined Benefit Pension Plan: Any employee not
governed by a collective agreement in Quebec who joined the Company
prior to April 1, 2006, any non-supervisory employee governed by a
collective agreement prior to September 6, 2006, and certain other
unionized employees are covered by this contributory defined benefit
pension plan, which comprises approximately one-tenth of the
Company’s total accrued benefit obligation. The plan has no indexation
and pensionable remuneration is determined by the average of the
best four years.
TELUS Edmonton Pension Plan: This contributory defined benefit
pension plan ceased accepting new participants on January 1, 1998.
Indexation is 60% of the annual change of a specified cost-of-living index
and pensionable remuneration is determined by the annualized average
of the best sixty consecutive months.
FINANCIAL STATEMENTS & NOTES: 13
13 EMPLOYEE FUTURE BENEFITS
Summary schedules and review of employee future benefits and related disclosures