CRA Annual Report to Parliament 2011-2012 (PDF - Agence du ...

5. Employee future benefits
(a) Pension benefits
The CRA and all eligible employees contribute to the Public Service Pension Plan, which is sponsored and administered
by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per
year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated
with Canada/Québec pension plans benefits and they are indexed to inflation.
Both the CRA and the employees contribute to the Public Service Pension Plan. The current year expense for the CRA’s
contributions represents approximately 1.8 times the contributions by employees. The contributions to the Public
Service Pension Plan for the year were as follows:
The CRA’s responsibility with regard to this plan is limited to its contributions. Actuarial surpluses or deficiencies are
recognized in the financial statements of the Government of Canada.
(b) Health and dental benefits
The CRA contributes for all eligible employees to the Public Service Health Care Plan and Public Service Dental Care
Plan, which are sponsored by the Government of Canada.
The CRA’s responsibility with regard to these plans is limited to its contributions (refer to note 10). Actuarial surpluses or
deficiencies are recognized in the financial statements of the Government of Canada.
(c) Severance benefits
The CRA provides severance benefits to its employees based on eligibility, years of service and salary upon termination.
One significant assumption used in the calculation of the obligation is the discount rate to determine the net present
value of the liability. The rate used for the 2012 calculation was 2.75%, down from 4% in the prior period. This explains
most of the increase in the obligation as at March 31, 2012. These severance benefits are not pre-funded with assets
supporting the obligations, resulting in a deficit equal to the accrued benefit obligations. Benefits will be paid from
future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
As part of changes to conditions of employment for certain employee groups effective October 1, 2011, the accumulation of
severance benefits ceased for these employees. Employees subject to these changes have been given the option to be
immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on
termination from the public service. These changes have been reflected in the calculation of the outstanding severance
benefit obligation.
ANNUAL REPORT
2011-2012
CANADA REVENUE AGENCY
2012 2011
(in thousands of dollars)
CRA’s contributions 328,483 327,140
Employees’ contributions 182,491 164,802
2012 2011
(in thousands of dollars)
Employee severance benefits, beginning of year 633,270 554,363
Cost for the year 184,675 125,687
Benefits paid during the year (69,901) (46,780)
Transfer to Shared Services Canada (note 11) (15,731) -
Employee severance benefits, end of year 732,313 633,270