Telus 2011 Annual Report Download - page 141

TELUS 2011 ANNUAL REPORT . 137
FINANCIAL STATEMENTS & NOTES: 14
With respect to certain issuances of restricted stock units, the Company has entered into cash-settled equity forward agreements that fix the cost
to the Company; that information, as well as a schedule of the Company’s non-vested restricted stock units outstanding as at December 31, 2011, is set
out in the following table.
Number of Cost fixed to Number of Total number
fixed-cost the Company variable-cost of non-vested
restricted per restricted restricted restricted
stock units stock unit stock units stock units
Vesting in years ending December 31
2012 538,000 $ß38.13 203,125 741,125
2013 447,000 $ß50.98 283,711 730,711
985,000 486,836 1,471,836
(d) Employee share purchase plan
The Company has an employee share purchase plan under which eligible
employees up to a certain job classification can purchase Common
Shares through regular payroll deductions by contributing between 1%
and 10% of their pay; for more highly compensated job classifications,
employees may contribute between 1% and up to 55% of their pay.
For every dollar contributed by an employee, up to a maximum of 6%
of eligible employee pay, the Company is required to contribute a per-
centage between 20% and 40% as designated by the Company. For the
years ended December 31, 2011 and 2010, the Company con tributed
40% for employees up to a certain job classification; for more highly
compensated job classifications, the Company contributed 35%. The
Company records its contributions as a component of Employee benefits
expense and the Company’s contribution vests on the earlier of a plan
participant’s last day in the Company’s employ or the last business day
of the calendar year of the Company’s contribution, unless the plan
participant’s employment is terminated with cause, in which case the
plan participant will forfeit their in-year Company contribution.
Years ended December 31 (millions) 2 0 11 2010
Employee contributions $ß 78 $ß 73
Company contributions 30 27
$ß108 $ß100
Under this plan, the Company has the option of offering shares from
Treasury or having the trustee acquire shares in the stock market. For the
years ended December 31, 2011 and 2010, all Common Shares issued
to employees under the plan were purchased on the market at normal
trading prices.
14 EMPLOYEE FUTURE BENEFITS
Summary schedules and review of employee future benefits and related disclosures
The Company has a number of defined benefit and defined contribution
plans providing pension, other retirement and post-employment benefits
to most of its employees. As at December 31, 2011, all registered defined
benefit pension plans are closed to substantially all new participants
and substantially all benefits have vested. Other employee 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.
TELUS Corporation Pension Plan
Management and professional employees in Alberta who joined the
Company prior to January 1, 2001, and certain unionized employees who
joined the Company prior to June 9, 2011, 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. Pensionable
remuneration is determined by the average of the best five years in the
last ten years preceding retirement.
Pension Plan for Management and Professional
Employees of TELUS Corporation
This defined benefit pension plan which, subject to certain limited
exceptions, 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
annually can 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 determined by the annualized average of the best
sixty consecutive months.
TELUS Québec Defined Benefit Pension Plan
This contributory defined benefit pension plan, which ceased accepting
new participants on April 14, 2009, covers 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. The plan comprises approximately one-tenth of the Company’s
total accrued benefit obligation. The plan has no indexation and pension-
able 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 deter-
mined by the annualized average of the best sixty consecutive months.