Tourism Chilliwack Inc. Financial Statements
TOURISM CHILLIWACK INC.
Notes to Financial Statements (continued)
Year ended December 31, 2013
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 Plan is a multi-employer contributory pension plan. Basic
pension benefits provided are defined. The plan has about 179,000 active members and
approximately 71,000 retired members. Active members included approximately 32,000
contributors from local government.
The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding
deficit for basic pension benefits. The next valuation will be as at December 31, 2015 with results
available in 2016. Employers participating in the Plan record their pension expense as the
amount of employer contributions made during the fiscal year (defined contribution pension plan
accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan
in aggregate with the result that there is no consistent and reliable basis for allocating the
obligation, assets and cost to the individual employers participating in the Plan.
10. Contingency:
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. Segmented information:
The Company is a diversified other government organization that provides a range of services,
including:
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2013 Annual Report
