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TOURISM CHILLIWACK INC.
Notes to Financial Statements (continued)
Year ended December 31, 2012
9. Employee future benefits:
The Company and its employees contribute to the Municipal Pension Plan (Plan), a jointly
trusteed pension plan. The Board of Trustees, representing plan members and employers, is
responsible for overseeing the management of the Plan, including investment of the assets and
administration of benefits. The pension plan is a multi-employer contributory pension plan. Basic
pension benefits provided are defined. The plan has about 150,000 active members and
approximately 54,000 retired members. Active members included approximately 32,000
contributors from local government.
Every three years an actuarial valuation is performed to assess the financial position of the Plan
and the adequacy of the Plan funding. The most recent valuation as at December 31, 2009
indicated an underfunded liability of $1,024 million for basic pension benefits. The next valuation
will be as at December 31, 2012, with results available in 2013. The actuary does not attribute
portions of the surplus to individual employers.
10. Commitment:
The Company entered into an agreement in 2011 with the City of Chilliwack which took into effect
on January 1, 2012. The agreement outlines the management and operation of Chilliwack
Heritage Park.
As a condition of the agreement with the City, the Company issued a non-revocable Letter of
Credit in the amount of $50,000 as a guarantee for the due and faithful performance of the
agreement.
11. Distribution to City of Chilliwack:
In accordance with an agreement between the Company and the City of Chilliwack, a distribution
of funds derived from the operation of Chilliwack Heritage Park is returned to the City and put into
a building reserve fund, specifically for future use at Chilliwack Heritage Park.
12. Comparative figures:
Certain comparative figures have been reclassified to conform with the financial statement
presentation adopted for the current year.
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