Full report - SGI Canada

Information about the Corporation’s defined benefit pension plan is as follows:
16. Employee Future Benefits
The Corporation incurs retirement benefit costs associated with its defined benefit pension plan, defined
contribution plan and its defined benefit service recognition plans. The Corporation allocates a portion of
these costs to the Saskatchewan Auto Fund for those employees of the Corporation who provide service
to it. These amounts have been disclosed separately in this note.
Defined benefit pension plan
The Corporation has a defined benefit pension plan for certain of its employees that has been closed to
new membership since 1980. Current service costs of this plan are charged to operations on the basis
of actuarial valuations, the most recent valuation being as of December 31, 2009. The next valuation is
anticipated to have a valuation date of December 31, 2010.
The actuarial valuation includes a provision for uncommitted and ad hoc benefit increases, and is
measured using management’s best estimates based on assumptions that reflect the most probable set
of economic circumstances and planned courses of action. The estimate, therefore, involves risks that the
actual amount may differ materially from the estimate. Results from the latest valuation as at December 31,
2009, projected to December 31, 2010, and the major assumptions used in the valuation, are as follows:
Economic assumptions: 2010 2009
Discount rate, beginning of period 5.30% 7.50%
Discount rate, end of period 4.90% 5.30%
Expected return on plan assets 5.50% 6.25%
Inflation rate 2.50% 2.50%
Expected salary increase 2.50% 2.50%
Post-retirement index — —
Remaining service life of active members in years (EARSL) 2 3
2010 2009
(thousands of $)
Accrued benefit obligation
Accrued benefit obligation, beginning of year $ 37,194 $ 35,531
Current service cost 131 126
Interest cost 1,899 2,559
Benefits paid (2,954) (3,008)
Change in actuarial assumptions 1,147 1,986
Experience gain (986) —
Accrued benefit obligation, end of year $ 36,431 $ 37,194
Plan assets
Fair value of plan assets, beginning of year $ 36,491 $ 35,533
Actual return on plan assets 3,192 3,822
Employer contributions 78 96
Employee contributions 36 48
Benefits paid (2,954) (3,008)
Fair value of plan assets, end of year $ 36,843 $ 36,491
Funded status – plan surplus (deficit) $ 412 $ (703)
Unamortized transitional asset — (3)
Unamortized net actuarial losses 4,039 5,125
Valuation allowance (277) —
Accrued pension asset $ 4,174 $ 4,419
As at December 31, 2010, $1,387,000 (2009 – $1,464,000) of the accrued pension asset has been recorded
by the Corporation (note 7) and $2,787,000 (2009 – $2,955,000) has been allocated to the Saskatchewan
Auto Fund.
88 | 2010 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2010 | 89