Bank of Montreal 2015 Annual Report Download - page 174

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Notes
Changes in the estimated financial positions of our pension benefit plans and other employee future benefit plans are as follows:
(Canadian $ in millions, except as noted) Pension benefit plans Other employee future benefit plans
2015 2014 2015 2014
Defined benefit obligation
Defined benefit obligation at beginning of year 7,504 6,181 1,317 1,174
Opening adjustment for acquisitions –455 ––
Benefits earned by employees 286 241 29 25
Interest cost on accrued benefit obligation 311 289 55 55
Gain due to settlement (13) –––
Benefits paid to pensioners and employees (373) (326) (39) (36)
Settlement payments (92) –––
Voluntary employee contributions 12 12 43
Actuarial gains (losses) due to:
Demographic assumption changes 17 48 (47) (15)
Financial assumption changes (146) 532 (33) 98
Plan member experience 108 (14) 11 (3)
Foreign exchange and other 320 86 26 16
Defined benefit obligation at end of year 7,934 7,504 1,323 1,317
Wholly or partially funded defined benefit obligation 7,710 7,339 163 125
Unfunded defined benefit obligation 224 165 1,160 1,192
Total defined benefit obligation 7,934 7,504 1,323 1,317
Weighted-average assumptions used to determine the defined benefit obligation
Discount rate at end of year 4.2% 4.1% 4.4% 4.2%
Rate of compensation increase 2.7% 2.9% 2.4% 2.6%
Assumed overall health care cost trend rate na na 5.5% (1) 5.4% (1)
Fair value of plan assets
Fair value of plan assets at beginning of year 7,536 6,267 113 95
Opening adjustment for acquisitions –456 ––
Interest income on plan assets 316 300 54
Excess (shortfall) of actual returns over interest income 182 458 (5) 5
Employer contributions 231 284 35 33
Voluntary employee contributions 12 12 43
Benefits paid to pensioners and employees (373) (326) (39) (36)
Settlement payments (92) –––
Administrative expenses (4) (5) ––
Foreign exchange and other 264 90 18 9
Fair value of plan assets at end of year 8,072 7,536 131 113
Surplus (deficit) and net defined benefit asset (liability) at end of year 138 32 (1,192) (1,204)
Recorded in:
Other assets 502 261 ––
Other liabilities (364) (229) (1,192) (1,204)
Surplus (deficit) and net defined benefit asset (liability) at end of year 138 32 (1,192) (1,204)
Actuarial gains (losses) recognized in other comprehensive income
Net actuarial gains on plan assets 182 458 (6) 5
Actuarial gains (losses) on defined benefit obligation due to:
Demographic assumption changes (17) (48) 44 14
Financial assumption changes 146 (532) 35 (95)
Plan member experience (108) 14 (4) (4)
Foreign exchange and other (22) –1–
Actuarial gains (losses) recognized in other comprehensive income for the year 181 (108) 70 (80)
(1) Trending to 4.5% in 2030 and remaining at that level thereafter.
na – not applicable
BMO Financial Group 198th Annual Report 2015 187