Air Canada 2010 Annual Report Download - page 115
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Consolidated Financial Statements and Notes
115
The net benefit obligation is recorded in the statement of financial position as follows:
2010 2009
Accrued pension benefit asset in Deposits and other assets $ 28 $ -
Accrued benefit liabilities in
Pension benefits obligation $ - $ 120
Other employee future benefits 1,129 1,109
Net benefit obligation 1,129 1,229
Current portion (70) (66)
Pension and other benefit liabilities $ 1,059 $ 1,163
The current portion of the net benefit obligation represents an estimate of other employee future benefits claims to be paid
during 2011. The current portion is included in Accounts payable and accrued liabilities.
Pension and Other Employee Future Benefit Expense
The Corporation has recorded net defined benefit pension and other employee future benefits expense as follows:
Pension Benefits Other Employee Future Benefits
2010 2009 2010 2009
Components of net periodic pension cost
Current service cost $ 160 $ 123 $ 53 $ 50
Interest cost 748 760 53 54
Actual return on plan assets (1,270) (1,296) - -
Actuarial loss on benefit obligation 1,501 1,015 110 33
Costs arising in the year 1,139 602 216 137
Differences between costs arising in the year
and costs recognized in the year in respect of:
Return on plan assets 469 460 - -
Actuarial gain (1,499) (1,068) (132) (62)
Increase (decrease) in valuation allowance provided
against accrued benefit asset (14) 6 - -
Net periodic benefit cost of plans 95 - 84 75
Amount charged to Aveos and Aeroplan (16) (20) (11) (12)
Net defined benefit pension and other employee
benefits expense $ 79 $ (20) $ 73 $ 63
Weighted average assumptions used to determine
the accrued benefit cost
Discount rate 6.40 % 7.35 % 5.75 - 6.40 % 6.25 - 7.35 %
Expected long-term rate of return on plan assets 7.00 % 7.15 % n/a n/a
Rate of compensation increase (1) 2.50 % 2.50 %
(1) A rate of compensation increase of 0% plus merit in 2010 was used in determining the net benefit pension expense and 2.5% plus merit for the remaining years.