Air Canada 2007 Annual Report Download - page 109

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Consolidated Financial Statements and Notes
109
Benefi t Obligation and Plan Assets
The following tables present fi nancial information related to the changes in the pension and other post-employment benefi ts plans:
Pension Benefi ts Other Employee Future Benefi ts
2007 2006 2007 2006
Change in benefi t obligation
Benefi t obligation at beginning of year $ 13,235 $ 12,921 $ 966 $ 940
Current service cost 254 254 69 77
Interest cost 649 640 49 48
Employees’ contributions 88 89 - -
Benefi ts paid (648 ) (627 ) (51 ) (60 )
Other benefi ts 2 - - -
Actuarial (gain) loss (1,278 ) (74 ) (119 ) (38 )
Deconsolidation of Jazz (100 ) - - -
Foreign exchange (52 ) 32 (15 ) (1 )
12,150 13,235 899 966
Change in plan assets
Fair value of plan assets at beginning of year 11,858 10,421 8 14
Actual return on plan assets 197 1,493 - 1
Employer contributions 382 455 43 47
Employees’ contributions 88 89 - -
Benefi ts paid (648 ) (627 ) (51 ) (54 )
Deconsolidation of Jazz (81 ) - - -
Foreign exchange (49 ) 27 - -
11,747 11,858 - 8
Defi cit at end of year 403 1,377 899 958
Employer contributions after measurement date (7 ) (7 ) (5 ) (6 )
Unrecognized net actuarial gain (loss) 497 (221 ) 149 46
Valuation allowance against accrued benefi t 1 - - -
Net benefi t obligation $ 894 $ 1,149 $ 1,043 $ 998
Weighted average assumptions used to determine
the accrued benefi t liability
Discount rate 5.75 % 5.00 % 5.75-6.00 % 5.00-5.50 %
Rate of compensation increase (a) 2.50 % 2.50 %
(a) As a result of pay awards during 2006, a rate of compensation increase of 1.75% was used for years 2006 to 2008
in determining the net benefi t obligation for the pension plan and 2.5% for the remaining years.
Under the terms of the domestic registered and supplementary plans, there is no indexation provided after January 1, 2007.
The pension benefi t defi cit of only those plans that are not fully funded at the end of the year is as follows:
2007 2006
Domestic registered plans (a) $ 35 $ 556
US, UK, and Japan 17 55
Supplementary plans 665 766
$ 717 $ 1,377
(a) Includes nil (2006 - $19) related to Jazz, which was consolidated until May 24, 2007 under AcG-15.