2012 Financial Statements - Workers' Compensation Board

Post-retirement benefit plan
WCB provides a contributory benefit plan that provides dental and health care benefits to retirees on
pensions between the ages of 55 to 65. As plan participants pay part of the benefit cost, the benefit
obligation represents the difference between actual costs and contributions subsidized by WCB.
Other benefit plans
Long-term disability plan
WCB administers a non-contributory long-term disability (LTD) income continuance plan for its employees,
with the WCB Accident Fund covering the obligations of the plan. The LTD liability represents the present
value of all future obligations arising from claims incurred during the period.
Employee benefit plan assumptions
The table below presents key assumptions applicable to WCB’s employee future benefit plans.
PSPP MEPP SERP
2012 2011
Post
Retirement LTD PSPP MEPP SERP
Post
Retirement
Date of most recent actuarial valuation 12/31/2012 12/31/2012 12/31/2012 12/31/2012 12/31/2012 12/31/2011 12/31/2011 12/31/2011 12/31/2011 12/31/2011
Economic assumptions
Discount rate (nominal) 4.30% 4.30% 4.50% 4.10% 3.50% 5.30% 5.20% 5.40% 5.00% 4.20%
Alberta inflation rate (long-term) 2.25% 2.25% 2.25% n/a n/a 2.25% 2.25% 2.25% n/a n/a
Salary escalation rate varied 3.50% 4.00% n/a 3.00% varied 3.50% 4.00% n/a 3.00%
Multi-employer plan funding
assumptions
WCB share of plan payroll 4.57% 1.34% 4.51% 1.31%
Effective rate on contributory payroll 14.17% 19.70% 14.17% 19.70%
WCB’s contributions for the current period
($ thousands) $ 11,500 $ 1,356 $ 10,021 $ 1,291
WCB’s expected contributions for the
following period ($ thousands) $ 13,925 $ 1,392 $ 10,671 $ 1,315
LTD
2012 FINANCIAL STATEMENTS and notes 63