The assumptions are as follows:

Form of Benefit Settlement Elected by Member

Lump sum:             70% of non-pensioners under age 55 and with less than 30 years of service.

Annuity purchase:    All remaining members are assumed to elect to receive their benefit                                          entitlement in the form of a deferred or immediate pension.

Basis for Benefits Assumed to be Settled through a Lump Sum

Mortality rates:         100% of the rates of the 2014 Canadian Pensioners Mortality Table                                             (CPM2014) with fully generational improvements using CPM Scale B

Interest rate:            2.40% per year for 10 years, 2.50% per year thereafter

Indexation rate for
benefits indexed at
75% of CPI less 2%:  0.00%

Indexation rate for
benefits indexed at
75% of CPI less 1%:  0.00%

Basis for Benefits Assumed to be Settled through the Purchase of an Annuity

Mortality rates:           100% of the rates of the 2014 Canadian Pensioners Mortality Table                                             (CPM2014) with fully generational improvements using CPM Scale B

Adjustment to mortality rates: No adjustment

Interest rate:              2.95% per year based on a duration of 10.81 years determined for the                                       liabilities assumed to be settled through the purchase of an annuity.

Indexation rate for
benefits indexed at
75% of CPI less 2%:     0.44% per year