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Notes to the Consolidated Financial Statements
For the year ended December 31, 2014
[tabular amounts in thousands of dollars]
25
City of Surrey
11. Employee future benefits (continued)
An actuarial valuation for these benefits was performed to determine the City’s accrued benefit obligation as
at December 31, 2014. The difference between the actuarially determined accrued benefit obligation of $23.1
million and the accrued benefit liability of $24.5 million as at December 31, 2014 is an unamortized actuarial
gain of $1.4 million. The actuarial gain is amortized over a period equal to the employees’ average remaining
service lifetime of 11 years.
2014
2013
Accrued benefit obligation:
Balance, beginning of year
$ 21,128
$
26,836
Current service cost
1,610
1,736
Interest cost
865
961
Actuarial loss (gain)
1,280
(7,059)
Benefits paid
(1,776)
(1,346)
Accrued benefit obligation, end of year
$ 23,107
$
21,128
Reconciliation of accrued benefit obligation to accrued benefit liability:
2014
2013
Actuarial benefit obligation, end of year
$ 23,107
$
21,128
Unamortized actuarial gain
1,413
2,753
Accrued benefit liability, end of year
$ 24,520
$
23,881
Actuarial assumptions used to determine the City’s accrued benefit obligation are as follows:
2014
2013
Discount rate
3.20%
4.00%
Expected future inflation rate
2.50%
2.50%
Expected wage and salary range increases
0.50%
0.50%
Employee average remaining service life (years)
11.0
11.0