AECON GROUP INC 55 22 EMPLOYEE BENEFIT PLANS The Company has defned beneft pension plans including supplementary executive retirement plans and defned contribution plans covering substantially all employees other than union employees who are covered by multiemployer pension plans administered by the unions Benefts under the defned beneft plans are generally based on the employees years of service and level of compensation near retirement Benefts are not indexed for infation except for a supplementary executive retirement plan which is fully indexed for changes in the consumer price index The Company does not provide postemployment benefts other than pensions The measurement date used for fnancial reporting purposes of the pension plan assets and beneft obligation is December 31 The most recent actuarial valuation fled for funding purposes for the principal defned beneft pension plan was completed as at December 31 2010 and the next required actuarial valuation will be prepared with an effective date no later than December 31 2013 The defned beneft pension obligation is presented as part of other liabilities on the consolidated balance sheets The fnancial position and other selected information related to the employee defned beneft pension plans is presented in the tables below 2012 2011 Change in fair value of plan assets Fair value of plan assets beginning of year 36038 35477 Expected return on plan assets 1901 2050 Actuarial gains losses 1024 1646 Company contributions 2482 1776 Plan participant contributions 123 133 Benefts paid 2614 1752 Fair value of plan assets end of year 38954 36038 Change in beneft obligation Beneft obligation beginning of year 44576 40240 Current service cost 774 650 Interest cost 1839 1962 Benefts paid 2614 1752 Plan participant contributions 123 133 Actuarial losses 1863 3343 Beneft obligation end of year 46561 44576 Funded Status Fair value of plan assets 38954 36038 Defned beneft obligation 46561 44576 Pension liabilities at December 31 7607 8538 2012 2011 Weighted average assumptions to calculate beneft obligation Discount rate 375 425 Rate of increase in future compensation 300 300 Asset categories of pension assets Debt securities 3600 3591 Equity securities 5365 5283 Other 1035 1126 2012 2011 Defned beneft pension expense Current service cost net of employee contributions 774 650 Interest cost 1839 1962 Expected return on plan assets 1901 2050 Defned beneft pension expense recognized in proft or loss 712 562 Actuarial losses recognized in other comprehensive income 839 4988 Defned beneft pension expense 1551 5550 Other pension expense Defned contribution pension expense 5163 4517 Multiemployer pension plan expense 60531 50831 Other pension expense 65694 55348 Defned beneft pension expense Weighted average assumptions to calculate pension beneft expense Discount rate 425 500 Assumed longterm rate of return on plan assets 575 625 Rate of increase in future compensation 300 350 During 2013 the Company expects to make contributions of 2392 to the defned beneft plans 2012 2011 Total cash contribution for employee pension plans Defned beneft plans 2482 1776 Defned contribution plans 5163 4517 Multiemployer pension plan 60531 50831 68176 57124 In 2012 the actual return on plan assets was 2925 2011 404