Financial Information Act Return - BC Hydro

Notes to Consolidated Financial Statements
For the Years Ended March 31, 2003 and 2002
(c) Included in the above accrued benefit obligation and fair value of plan assets at year-end are the
following amounts in respect of plans that are not fully funded:
Pension Benefit Plans Other Benefit Plans
(in millions) 2003 2002 2003 2002
Accrued benefit obligation $2,013 $ 59 $ 184 $ 133
Fair value of plan assets 1,785 – – –
Funded status-plan deficit $ (228) $ (59) $ (184) $(133)
(d) The significant assumptions adopted in measuring BC Hydro’s accrued benefit obligations are as
follows:
Pension Benefit Plans Other Benefit Plans
2003 2002 2003 2002
Discount rate 7% 7% 7% 7%
Expected long-term
rate of return on plan assets 7% 7% n/a n/a
projected projected
Rate of compensation increase inflation + inflation +
2.0% 1.5%
For measurement purposes, a 5.2% health care cost trend rate was assumed for 2003 (2002 – 6%).
(e) Other information about BC Hydro’s defined benefit plans is as follows:
Pension Benefit Plans Other Benefit Plans
(in millions) 2003 2002 2003 2002
Employer contributions $ 35 $ 24 $ - $ –
Employees’ contributions $ 18 $ 13 $ - $ –
Benefits paid $ 91 $ 89 $ 7 $ 6