Detailed Version -

Detailed Version -

18. Employee Future Benefits

UFA administers two defined benefit pension plans: a funded registered plan (“RPP”) for all employees and an

unfunded supplemental retirement plan (“SERP”) for those employees whose earnings exceed the maximum

allowable under government guidelines for the RPP. UFA funds the RPP in accordance with current pension

legislation. UFA does not fund the SERP but has the obligation to pay SERP benefits out of general revenue in the

period payments are made. Pension benefits are provided to qualified employees and are based, in general, on

years of service and compensation near retirement.

UFA measures its accrued benefit obligation and the fair value of plan assets of its pension plans for accounting

purposes as at the end of each fiscal period. The most recent actuarial valuation of the RPP for funding purposes

was as of December 31, 2010.

Information regarding UFA’s defined benefit plans is as follows:

December 25,


December 26,


Accrued benefit obligation, end of year $ 96,062 $ 96,685

Market value of plan assets, end of year 84,200 86,768

Deficit of plan at end of year (11,862) (9,917)

Employer contributions subsequent to fiscal year end (496) (380)

Unamortized net actuarial loss 4,864 1,930

Accrued liability $ (7,494) $ (8,367)

Included in the accrued benefit obligation is $3.1 million related to the SERP (2010 – $2.9 million).

UFA’s accrued liability of $7.5 million differs from its funded status deficit of $11.9 million due to $4.9 million in

unamortized net actuarial losses and $0.5 million in employer contributions that occurred subsequent to the fiscal

year end date of December 25, 2011. Unamortized actuarial losses arise from differences between the expected

and actual long-term rate of return on plan assets and from differences between actuary assumptions used to

calculate UFA’s accrued benefit obligation and UFA’s actual experience.


UFA 2011 Unabridged Annual Report 50

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