Cogeco 2003 Annual Report Download - page 40

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
38 Cogeco Cable Inc. 2003
15 Employees future benefits
The Corporation and its subsidiaries offer their employees contributory defined benefit pension plans, a defined contribution
pension plan or a collective registered retirement savings plan. With respect to the last two plans, the Corporation and its
subsidiaries’ obligation is limited to the payment of the monthly employer’s portion. Expenses related to these two plans
amounted to $982,000 ($922,000 in 2002).
The defined benefit pension plans provide pensions based on the number of years of service and the average salary during
the employment of each participant. In addition, the Corporation and its subsidiaries offer certain executives a supplementary
pension plan.
The following table provides a reconciliation of the change in the plans’ benefit obligations and fair value of plan assets and
a statement of the funded status as at August 31:
The net benefit expense includes the following components:
The significant weighted average assumptions used in measuring the Corporation’s pension and other obligations are as follows:
2003 2002
Change in accrued benefit obligation
Accrued benefit obligation at beginning of year $5,453 $4,903
Service cost 286 282
Interest cost 404 364
Actuarial loss on obligation 404 8
Contributions by plan participants 132 121
Benefits paid (210) (225)
Accrued benefit obligation at end of year 6,469 5,453
Change in plan assets
Fair value of plan assets at beginning of year 3,560 3,733
Actual return on plan assets 221 (201)
Contributions by plan participants 132 121
Employer contributions 184 132
Benefits paid (210) (225)
Fair value of plan assets at end of year 3,887 3,560
Funded Status
Plans deficit 2,582 1,893
Net actuarial losses not recognized (1,635) (1,262)
Net accrued benefit liability $947 $631
2003 2002
Discount rate 6.50 % 7.00 %
Expected rate of return on plan assets 7.25 % 7.25 %
Rate of compensation increase 5.00 % 5.00 %
2003 2002
Current cost $286 $282
Interest cost 404 364
Expected return on plan assets (262) (272)
Amortization of net actuarial loss 72 33
Net periodic benefit cost $500 $407