Air Canada 2008 Annual Report Download - page 115

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Consolidated Financial Statements and Notes
115
BenetObligationandPlanAssets
The following tables present financial information related to the changes in the pension and other post-employment benefits plans:
Pension Benefits Other Employee Future Benefits
2008 2007 2008 2007
Changeinbenetobligation
Benefit obligation at beginning of year $ 12,150 $ 13,235 $ 899 $ 966
Current service cost 203 254 62 69
Interest cost 706 649 52 49
Employees’ contributions 83 88 - -
Benefits paid (677) (648) (57) (51)
Plan amendments 2 - - -
Other termination benefits - 2 - -
Actuarial gain (1,738) (1,278) (189) (119)
Deconsolidation of Jazz - (100) - -
Foreign exchange gain (loss) - (52) 23 (15)
10,729 12,150 790 899
Change in plan assets
Fair value of plan assets at beginning of year 11,747 11,858 - 8
Actual return (loss) on plan assets (1,879) 197 - -
Employer contributions 456 382 57 43
Employees’ contributions 83 88 - -
Benefits paid (677) (648) (57) (51)
Deconsolidation of Jazz - (81) - -
Foreign exchange gain (loss) (13) (49) - -
9,717 11,747 - -
Deficit at end of year 1,012 403 790 899
Employer contributions after measurement date - (7) - (5)
Unrecognized past service costs (2) - - -
Unrecognized net actuarial gain (loss) (479) 497 321 149
Valuation allowance against accrued benefit 9 1 - -
Netbenetobligation $ 540 $ 894 $ 1,111 $ 1,043
Weighted average assumptions used to determine
 theaccruedbenetliability
Discount rate 7.35 % 5.75 % 6.25-7.35 % 5.75-6.00 %
Rate of compensation increase (a) 2.50 % 2.50 %
(a) As a result of pay awards, a rate of compensation increase of 1.75% was used for years 2007 and 2008 in determining
the net benefit obligation for the pension plan and 2.50% 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 benefit deficit of only those plans that are not fully funded at the end of the year is as follows:
2008 2007
Domestic registered plans $ 383 $ 35
US, UK, and Japan 83 17
Supplementary plans 606 665
$ 1,072 $ 717
The net deficit, on an accounting basis, at December 31, 2008 for pension benefits was $1,012 (2007 - $403). The increase
in the accounting deficit is mainly the result of the significant losses on the market value of plan assets offset by the gains
resulting from the increase in the discount rate used to value pension obligations along with the funding of past service
employer contributions of $189.