NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 22: PENSIONS
We have contributory and non-contributory defined benefit pension
plans that are made available to most of our employees. The plans
provide pensions based on years of service, years of contributions and
earnings. We do not provide any non-pension post-retirement benefits.
We also provide unfunded supplemental pension benefits to certain
executives.
The assets of the defined benefit pension plans are held in segregated
accounts isolated from our assets. We administer the defined benefit
pension plans pursuant to applicable regulations, the Statement of
Investment Policies and Procedures and to the mandate of the Pension
Committee of the Board of Directors. The Pension Committee of the
Board of Directors oversees our administration of the defined benefits
pension plans, which includes the following principal areas:
 overseeing the funding, administration, communication and
investment management of the plans
 selecting and monitoring the performance of all third parties
performing duties in respect of the plans, including audit, actuarial
and investment management services
 proposing, considering and approving amendments to the defined
benefit pension plans
 proposing, considering and approving amendments of the Statement
of Investment Policies and Procedures
 reviewing management and actuarial reports prepared in respect of
the administration of the defined benefit pension plans
 reviewing and approving the audited financial statements of the
defined benefit pension plan funds.
The assets of the defined benefit pension plans are invested and
managed following all applicable regulations and the Statement of
Investment Policies and Procedures, and reflect the characteristics and
asset mix of each defined benefit pension plan. Investment and market
return risk is managed by:
 contracting professional investment managers to execute the
investment strategy following the Statement of Investment Policies
and Procedures and regulatory requirements
 specifying the kinds of investments that can be held in the plans and
monitoring compliance
 using asset allocation and diversification strategies, and
 purchasing annuities from time to time.
The funded pension plans are registered with the Office of the
Superintendent of Financial Institutions and are subject to the Federal
Pension Benefits Standards Act. The plans are also registered with the
Canada Revenue Agency and are subject to the Canada Income Tax
Act. The benefits provided under the plans and the contributions to the
plans are funded and administered in accordance with all applicable
legislation and regulations.
Significant estimates are involved in determining pension related
balances. Actuarial estimates are based on projections of employees’
compensation levels at the time of retirement. Maximum retirement
benefits are primarily based on career average earnings, subject to
certain adjustments. The most recent actuarial valuations were
completed as at January 1, 2013.
The table below sets out the estimated present value of accrued plan
benefits and the estimated market value of the net assets available to
provide these benefits for our funded plans at December 31, 2013 and
2012.
2013 2012
Plan assets, at fair value $ 1,037 $ 833
Accrued benefit obligations 1,209 1,167
Deficiency of plan assets over accrued benefit obligations (172) (334)
Effect of asset ceiling limit (9) –
Net deferred pension liability $ (181) $ (334)
Consists of:
Deferred pension asset $8 $9
Deferred pension liability (189) (343)
Net deferred pension liability $ (181) $ (334)
The table below shows our pension fund assets for the years ended
2013 and 2012.
2013 2012
Plan assets, January 1 $ 833 $ 684
Interest income 40 40
Remeasurements, return on plan assets recognized in other
comprehensive income and equity 65 37
Contributions by employees 26 22
Contributions by employer 101 85
Benefits paid (26) (33)