Air Canada 2007 Annual Report Download - page 108

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2007 Air Canada Annual Report
108
10. PENSION AND OTHER BENEFIT LIABILITIES
The Corporation maintains several defi ned benefi t and defi ned contribution plans providing pension, other post-retirement
and post-employment benefi ts to its employees, including those employees of the Corporation who are contractually
assigned to ACTS Aero and Aeroplan.
The Corporation is the administrator and sponsoring employer of ten Domestic Registered Plans (“Domestic Registered
Plans”) under the Pension Benefi ts Standard Act, 1985 (Canada). The US plan, UK plan and Japan plan are international plans
covering employees in those countries. In addition, the Corporation maintains a number of supplementary pension plans,
which are not registered. The defi ned benefi t pension plans provide benefi ts upon retirement, termination or death based
on the member’s years of service and fi nal average earnings for a specifi ed period.
The other employee benefi ts consist of health, life and disability. These benefi ts consist of both post-employment and
post-retirement benefi ts. The post-employment benefi ts relate to disability benefi ts available to eligible active employees,
while the post-retirement benefi ts are comprised of health care and life insurance benefi ts available to eligible retired
employees.
Certain Corporation employees perform work for ACE and others are contractually assigned to ACTS Aero or Aeroplan.
These employees are members of Corporation-sponsored defi ned benefi t pension plans and also participate in Corporation-
sponsored health, life and disability future benefi t plans. These consolidated fi nancial statements include all of the assets
and liabilities of all Corporation-sponsored plans. The employee benefi t expense in these consolidated fi nancial statements
includes the expenses for all employees participating in the plans less a cost recovery which is charged to the related parties
for those employees assigned. The cost recovery includes current service costs for pensions along with their portion of post-
employment and post-retirement benefi ts, based on the actuarial calculation for their specifi c employee group. This cost
recovery amounted to $40 for the year ended December 31, 2007 (2006 - $56).
The measurement date used for fi nancial reporting on the pension and other benefi t obligations is November 30.
As described in Note 20, Air Canada and ACTS Aero are parties to a Pension and Benefi ts Agreement covering the future
transfer of certain pension and benefi t assets and obligations to ACTS Aero.