FlyerTalk Forums - View Single Post - Ottawa eyes Air Canada pension moratorium extension

Jan 22, 2014 | 7:32 am

#54

tcook052

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http://www.theglobeandmail.com/repor...ticle16444449/

Air Canada’s domestic pension plans have swung to a small surplus from a solvency deficit of $3.7-billion a year ago.

The airline said on Wednesday preliminary estimates indicate that its pension plans will be in a “small surplus position” at Jan. 1, 2014.

Elimination of the deficit came about as a result of several factors, including a 13.8 per cent return on investments last year; amended pension benefits that are estimated to have trimmed the deficit by about $970-million; contributions by Air Canada for the year of $225-million; and the application of an estimated prescribed discount rate of 3.9 per cent to calculate future obligations.

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