The table below shows the net benefit plans cost (credit) before and after recognizing its long-term nature. The recognized net benefit plan cost (credit) reflects the amount reported in our statement of operations and is calculated according to our accounting policy. Components of Net Benefit Plans Cost (Credit) PENSION BENEFITS OTHER BENEFITS  FOR THE YEAR ENDED DECEMBER 31 2004 2003 2002 2004 2003 2002 Current service cost 243 222 223 31 31 35 Interest cost on accrued benefit obligation 806 757 749 104 105 94 Actual (return) loss on plan assets (1,074) (1,583) 854 (4) (8) (1) Past service costs arising during period 77 4 50 14 2 – Actuarial loss (gain) on accrued benefit obligation 772 513 (19) 102 (52) 173 Elements of employee future benefit plans cost (credit),  before recognizing its long-term nature 824 (87) 1,857 247 78 301 Excess (deficiency) of actual return over expected return (1) 121 648 (1,981) (6) (1) (10) Deferral of amounts arising during period: Past service costs  (77) (4) (50) (14) (2) – Actuarial (loss) gain on accrued benefit obligation  (772) (513) 19 (102) 52 (173) Amortization of previously deferred amounts: Past service costs 10 9 6 – – – Net actuarial losses 33 23 1 1 – – Transitional (asset) obligation (44) (44) (56) 30 30 39 Adjustments to recognize long-term nature of  employee future benefit plans cost (credit) (729) 119 (2,061) (91) 79 (144) Increase (decrease) in valuation allowance 3 (12) 14 –  – – Other 2 (2) – – – – Net benefit plans cost (credit), recognized 100 18 (190) 156 157 157 Comprised of: Defined benefit plans cost 85 13 (190) 156 157 157 Defined contribution plans cost 15 5 – – – – (1) The expected return on plan assets for a given year is calculated based on the market-related value of plan assets as at the beginning of that year. The market-related value of pension plan assets was $13,044 million at January 1, 2004, $12,542 million at January 1, 2003, and $13,922 million at January 1, 2002. We used the following key assumptions to measure the accrued benefit obligation and the net benefit plans cost (credit) for the DB pension plans and plans that provide other employee future benefits. These assumptions are long-term, which is consistent with the nature of employee benefit plans. Significant Assumptions PENSION BENEFITS OTHER BENEFITS  2004 2003 2002 2004 2003 2002 At December 31 Accrued benefit obligation: Discount rate, end of year 6.2% 6.5% 6.5% 6.2% 6.5% 6.5% Rate of compensation increase, end of year 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% For the year ended December 31 Net benefit plans cost (credit): Discount rate, end of preceding year 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% Expected return on plan assets, end of preceding year 7.5% 7.5% 8.3% 7.5% 7.5% 8.3% Rate of compensation increase, end of preceding year 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Bell Canada Enterprises  2004 Annual Report 113