Workplace Safety & Prevention Services 2012 Annual Report
32
December 31, 2012
Workplace Safety & Prevention Services
Notes to Financial Statements
14. Employee Future Benefits
The Association provides extended health care, dental and life insurance benefits to all employees with
the cost of these benefits recognized on an accrual basis under CICA section 3461. The accrued
benefit obligation relating to post-retirement benefit plans as at December 31 is as follows:
2012 2011
Accrued benefit obligation, beginning of year $28,694,000 $ 18,443,100
Actuarial loss due to change in discount rate 5,160,900 1,722,800
Actuarial loss 3,412,100 6,895,600
Current service costs 1,273,400 871,600
Interest cost on obligation 1,565,100 1,195,900
40,105,500 29,129,000
Benefit payments (450,000) (435,000)
Accrued benefit obligation, end of year 39,655,500 28,694,000
Funded status - plan deficit 39,655,500 28,694,000
Unamortized prior service costs (2,226,300) (2,459,500)
Unamortized net actuarial losses (19,586,200) (12,078,900)
Accrued benefit liability $ 17,843,000 $ 14,155,600
Benefit plan expense
Current service cost $ 1,273,400 $ 871,600
Interest on accrued benefit obligation 1,565,100 1,195,900
Amortization of actuarial losses 1,065,700 236,300
Amortization of past service costs 233,200 256,500
Net benefit plan expense $ 4,137,400 $ 2,560,300
The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligations
are as follows:
Discount rate 4.0% (2011 - 5.40%)
Annual rates of increase:
Supplementary hospital and prescription drugs 9.0% in 2013, decreasing by 0.50%
per annum to 5.00% in 2021
Extended health care and dental care 4.0% (2011 - 4.0%) per annum
15. Contributed Surplus
On January 1, 2001 the former FSA became self-administered and the value of assets previously
recorded as expenditures and funded by the WSIB was recorded as contributed surplus.
