- Both the employees and the Agency contribute to the cost of the Plan. In 2011-2012,
the Agency contributed $61,137,000 (2011 - $59,151,000), which represents approximately
1.8 times (2011 - 1.9 times) the contributions by employees.
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.
- 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 and thus have no
assets, resulting in a plan deficit equal to the accrued benefit obligation. Benefits
will be paid from future authorities. Information about the severance benefits, measured
for March 31, is as follows:
As part of collective agreement negotiations with certain employee groups, and changes
to conditions of employment for executives and certain non-represented employees, the
accumulation of severance benefits under the employee severance pay program ceased for
these employees commencing in 2012.
Employees subject to these changes have been given the option to be immediately paid the
full or partial value of benefits earned to date or collect the full or remaining value
of benefits on termination from the public service. These changes have been reflected in
the calculation of the outstanding severance benefit obligation.
| (In thousands of dollars) |
2012 |
2011 |
| Accrued benefit obligation, beginning of year |
$106,036 |
$97,591 |
| Transferred to SSC, effective November 15, 2011 (Note 12) |
(931) |
- |
| Subtotal |
105,105 |
97,591 |
| Expense for the year |
28,117 |
16,178 |
| Benefits paid during the year |
(11,449) |
(7,733) |
| Accrued benefit obligation, end of year |
$121,773 |
$106,036 |