page 125 Bombardier Inc. Annual Report 2003-04 NOTE 23. EMPLOYEE FUTURE BENEFITS (CONT ’ D) Benefits other than pensions The following table provides the components of the benefit cost for the years ended January 31: $^{(1)}$For the year ended January 31, 2004, benefit cost for the Canadian plans includes $4 million ($1 million for the year ended January 31, 2003) relative to the recreational products segment.  These amounts are included in income from discontinued operations in the consolidated statements of income. For the year ended January 31, 2004, benefit cost excludes curtailment  and settlement gains of $2 million for the Canadian plans resulting from the sale of the recreational products segment and MAS since these gains are included in the calculation of the gain  on disposal of businesses. As at January 31, 2004, the health-care cost trend rate, which is a weighted-average annual rate of increase in the per capita cost of covered health- and dental-care benefits, is assumed to be 9.5% for all participants. This rate is assumed to decrease to 5.5% by fiscal year 2009 and then remain at that level. A one-percentage-point change in assumed health-care cost trend rates would have the following effects: Cash contributions to the pension plans for fiscal year 2005 would amount to $370 million. Actual cash contributions to the pension plans for fiscal year 2005 are estimated to be $400 million. This estimate includes a voluntary contribution of $242 million to the aerospace  plans in the U.K., and excludes a $212 million advance contribution made during fiscal year 2004. The significant actuarial assumptions used to determine the benefit cost and projected benefit obligation were as follows (weighted-average assumptions as at the December - 31 measurement date preceding the fiscal year end): Benefit cost (1) 2004 2003 CANADA FOREIGN TOTAL CANADA FOREIGN TOTAL Current service cost $12 $ 2 $ 14 $11 $ 2 $13 Interest cost 16 4 20 15 5 20 Actuarial loss 37 5 42 26 3 29 Plan amendments 34 – 34 2 – 2 Curtailment gain (9) – (9) (5) – (5) Benefit cost before adjustments to recognize  the long-term nature of the plans 90 11 101 49 10 59 Difference between actual actuarial gains  for the year and the amount recognized (34) (5) (39) (25) (3) (28) Amortization of past service costs 4 – 4 (2) – (2) Benefit cost recognized $60 $ 6 $ 66 $22 $ 7 $29 1% INCREASE 1% DECREASE Effect on benefit cost recognized $4 $( 3 ) Effect on projected benefit obligation $31 $(27) Actuarial assumptions 2004 2003 (PERCENTAGE) CANADA FOREIGN TOTAL CANADA FOREIGN TOTAL Discount rate – benefit cost 6.50 6.54 6.51 6.50 7.01 6.63 Discount rate – projected benefit obligation 6.00 5.90 5.98 6.50 6.54 6.51 Rate of compensation increase – benefit cost 4.25 4.50 4.30 4.25 4.88 4.41 Rate of compensation increase – projected  benefit obligation 4.00 4.00 4.00 4.25 4.50 4.30