TD Bank 2006 Annual Report Download - page 96

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2006 Financial Results
92
Plan Benefit Obligations, Assets and Funded Status
(millions of Canadian dollars) 2006 2005 2004
Accumulated benefit obligation at end of period $1,783 $1,810 $1,446
Change in projected benefit obligation
Projected benefit obligation at beginning of period 1,978 1,535 1,418
Service cost – benefits earned 71 46 38
Interest cost on projected benefit obligation 105 101 94
Members’ contributions 29 2626
Benefits paid (114) (93) (95)
Actuarial (gains) losses –(9) 2
Change in actuarial assumptions (96) 318 44
Plan amendments 6548
Projected benefit obligation at end of period 1,979 1,978 1,535
Change in plan assets
Plan assets at fair market value at beginning of period 1,907 1,650 1,507
Actual income on plan assets 67 78 61
Gain (loss) on disposal of investments (113) 286 204
Members’ contributions 29 2626
Employer’s contributions 60 6446
Increase (decrease) in unrealized gains on investments 185 (95) (86)
Benefits paid (114) (93) (95)
General and administrative expenses (6) (9) (14)
Other ––1
Plan assets at fair market value at end of period 2,015 1,907 1,650
Excess (deficit) of plan assets over projected benefit obligation 36 (71) 115
Unrecognized net loss from past experience, different from that assumed,
and effects of changes in assumptions 293 416 265
Unrecognized prior service costs 61 6214
Employer’scontributions in fourth quarter 14 15 22
Prepaid pension expense $ 404 $422 $ 416
Annual expense
Net pension expense includes the following components:
Service cost – benefits earned $71 $46 $38
Interest cost on projected benefit obligation 105 101 94
Actual return on plan assets (133) (260) (165)
Actuarial (gains) losses (96) 309 46
Plan amendments 654 8
Difference between costs arising in the period and costs recognized in the period in respect of:
Returnon plan assets15149 64
Actuarial (gains) losses2118 (300) (31)
Plan amendments32(48) (7)
Pension expense $78 $ 51 $ 47
Actuarial assumptions used to determine the annual expense
Weighted average discount rate for projected benefit obligation 5.20% 6.40% 6.50%
Weighted average rate of compensation increase 3.50 3.50 3.50
Weighted average expected long-term rate of return on plan assets46.75 6.75 6.75
Actuarial assumptions used to determine the benefit obligation at end of period
Weighted average discount rate for projected benefit obligation 5.50% 5.20% 6.40%
Weighted average rate of compensation increase 3.50 3.50 3.50
Weighted average expected long term rate of returnon plan assets46.75 6.75 6.75
1Includes expected return on plan assets of $128 million (2005 – $111 mil-
lion; 2004 – $101 million) less actual return on plan assets of $133 million
(2005 – $260 million; 2004 – $165 million).
2Includes loss recognized in fiscal 2006 of $22 million (2005 – $9 million;
2004 – $15 million) less actuarial (gains) losses on projected benefit
obligation in the year of $(96) million (2005 – $309 million; 2004 –
$46 million).
3Includes amortization of costs for plan amendments in fiscal 2006
of $8 million (2005 – $6 million; 2004 – $1 million) less actual
cost of plan amendments in the year of $6 million (2005 – $54 million;
2004 – $8 million).
4Net of fees and expenses.