Expenses

The assumption is based on the average amount of non-investment expenses over the last 3 years.

Inflation

The inflation assumption is based on the mid-point of the Bank of Canada’s inflation target range of between 1% and 3%.

Income Tax Act Pension Limit and Year’s Maximum Pensionable Earnings

The assumption is based on historical real economic growth and the underlying inflation assumption.

Post- Retirement Pension Earnings

The assumption is based on the Plan formula and inflation assumption above.

Retirement Rates

Due to the size of the Plan, there is no meaningful retirement experience. The assumption is based on the Plan provisions and our experience with similar plans and employee groups.

Termination Rates

Use of a different assumption would not have a material impact on the valuation.

Mortality Rates

The assumption for the mortality rates is based on the Canadian Pensioners’ Mortality (CPM) study published by the Canadian Institute of Actuaries in February 2014.

Due to the size of the Plan, specific data on plan mortality experience is insufficient to determine the mortality rates. It was determined to use the CPM mortality rates from the private sector without adjustment after considering plan-specific characteristics, such as the type of employment, the industry experience, the pension and employment income for the plan members, and data in the CPM study.

There is broad consensus among actuaries and other longevity experts that mortality