2022-23 SGI CANADA Annual Report
Defined benefit service recognition plans
Current service costs of the service recognition plans are charged to operations on the basis of actuarial valuations
performed annually as at December 31. Results from the latest valuations have been projected to March 31. The
actuarial valuations are measured using management's best estimates based on assumptions that reflect the most
probable set of economic circumstances and planned courses of action. The estimates, therefore, involve risks that
the actual amount may differ materially from the estimate. Significant actuarial assumptions adopted in measuring
the Corporation's accrued benefit obligation are:
Discount rate
Expected salary increase
Inflation rate
Termination rate
EARSL management
EARSL-in-scope
Changes in the assumptions would impact the accrued benefit obligation as follows:
Discount rate
Expected salary increase
Inflation rate
Termination rate
2023
2022
4.8%
3.8%
3.0%
3.0%
2.0%
2.0%
0.6%
0.6%
12
12
9
9
(thousands of $)
1% Increase
1% Decrease
2023
2022
2023
2022
(540)
(790)
619
915
623
901
(553)
(794)
1
(4)
(1)
4
(572)
(820)
378
546
The weighted average duration of the accrued benefit obligation is 5.4 years (2022 - 6.4 years).
Information about the defined benefit service recognition plans is as follows:
(thousands of $)
Accrued benefit obligation
2023
2022
Accrued benefit obligation, beginning of the year
Current service cost
$
11,818 $
13,502
Interest cost
Benefits paid
86
363
109
305
(1,882)
(1,688)
Experience gain
(137)
(410)
Accrued benefit obligation, end of the year
$
10,248
$
11,818
78 2022-23 SGI CANADA Annual ReportView entire presentation