Royal Ontario Museum Annual Report 2007/2008

The significant actuarial assumptions adopted to determine the expense for the
Museum’s benefit plans as at March 31, are as follows:
Pension Non-pension
2008 2007 2008 2007
% % % %
Discount rate 6.00 5.25 6.00 5.25
Expected long-term rate of return on plan assets 7.00 7.00 — —
Rate of compensation increase 3.50 3.00 — —
The significant actuarial assumptions adopted in measuring the accrued
benefit assets and liabilities of the Museum’s benefit plans as at March 31, are
as follows:
Pension Non-pension
2008 2007 2008 2007
% % % %
Discount rate 6.00 5.25 6.00 5.25
Rate of compensation increase 3.50 3.50 — —
For measurement purposes as at March 31, 2008, an initial weighted average
increase in the cost of healthcare and dental benefits of 6.83% in 2008 was
assumed decreasing to a 4.50% annual rate of increase after 2019.
The Museum’s pension plan assets are invested in pooled funds that provide
the following asset mix:
March 31, March 31,
2008 2007
% %
Cash and cash equivalents 4 5
Bonds 35 32
Canadian equities 32 33
U.S. equities 15 16
Other foreign equities 14 14
100 100
Other information about the Museum’s pension and non-pension plans is as
follows:
Pension Non-pension
2008 2007 2008 2007
$ $ [000’s] $ $
Employee contributions 600 652 — —
Employer contributions 4,485 4,444 111 118
Benefits paid 3,072 2,829 111 118
The most recent actuarial valuation of the registered pension plan for funding
purposes was as of January 1, 2007 and the next required valuation is as of
January 1, 2008. The measurement date for the benefit plans was March 31,
2008.
15. Credit Facilities
[a] The Museum has a credit agreement with the Museum’s banker, as
follows:
•
•
$5,000,000 demand revolving operating credit facility with interest
payable at prime less 10 basis points. As at March 31, 2008, the
outstanding balance in connection with this facility was $2,488,000
[2007 – $4,690,000].
$2,000,000 letter of credit facility. As at March 31, 2008 and 2007, the
Museum did not have any outstanding letters of credit.
[b] On October 5, 2007, the Museum signed a new credit agreement with
the OFA. The credit agreement is comprised of a non-revolving fixed rate
facility of $40,000,000 and a non-revolving floating rate facility with a
maximum limit of $51,000,000. The fixed rate facility is divided into four
tranches bearing interest rates of between 5.04% and 5.12%. The floating
rate facility bears interest at a rate equal to the 30 day Ontario treasury
bill rate plus 40 basis points. As at March 31, 2008, there is $40,000,000
outstanding with respect to the fixed rate facility and $48,640,000
outstanding with respect to the floating rate facility.
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