Current Service Cost
No employer current service cost is required, as effective December 31, 1999 the plan was frozen. Pension benefits for service after January 1, 2000 are provided under OMERS.
Actuarial Assumptions – Going Concern Basis
The present value of future benefit payment cash flows is based on economic and demographic assumptions. At each valuation we determine whether, in our opinion, the actuarial assumptions are still appropriate for the purposes of the valuation, and we revise them, if necessary. Emerging experience will result in gains or losses that will be revealed and considered in future actuarial valuations.
The table below shows the various assumptions used in the current valuation in comparison with those used in the previous valuation.
| Assumption | Current valuation | Previous valuation |
|---|---|---|
| Discount rate: | 4.90% | 4.90% |
| Explicit expenses: | $100,000 | $100,000 |
| Inflation: | 2.00% | 2.00% |
| ITA limit / YMPE increases: | 3.00% | 3.00% |
| Pensionable earnings increases: | N/A | N/A |
| Post-retirement pension increases (for benefits indexed at 75% x CPI less 1%): | 0.50% | 0.50% |
| Post-retirement pension increases (for benefits indexed at 75% x CPI less 2%): | 0.00% | 0.00% |
| Retirement rates: | Age-related table | Age-related table |
| Mortality rates: | 100% of the rates of the 2014 Private Sector Canadian Pensioners Mortality Table (CPM2014Priv) | 100% of the rates of the 2014 Private Sector Canadian Pensioners Mortality Table (CPM2014Priv) |