ARCHIVED - Financial Statements For the year ended March 31, 2011

 

Notes to the Financial Statements (unaudited)

7. Employee future benefits

a. Pension benefits

The Agency's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan. The expense presented below represents approximately 1.9 times ( 1.9 times in 2009-10) the contributions by employees.

(in dollars)
2011 2010
Expense for the year $ 24,838,604 $ 24,710,898

The Agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

b. Severance benefits 

The Agency provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)
2011 2010
Accrued benefit obligation, beginning of year $ 41,594,689 $ 42,494,997
Expense for the year 6,446,387 736,839
Benefits paid during the year (1,997,081) (1,637,148)
Accrued benefit obligation, end of year $ 46,043,995 $ 41,594,689

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