NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Multiemployer Pension Plan Loss Contingencies  HYDRO ONE ANNUAL REPORT 2013 63 Provisions are based upon current estimates and are subject to greater uncertainty where the projection period is lengthy. A significant upward  or downward trend in the number of claims filed, the nature of the alleged injuries, and the average cost of resolving each claim could change  the estimated provision, as could any substantial adverse or favourable verdict at trial. A federal or provincial legislative outcome or structured  settlement could also change the estimated liability. Legal fees are expensed as incurred. Management regularly reviews current information available to determine whether recorded provisions should be adjusted and whether new  provisions are required. Estimating probable losses may require analysis of multiple forecasts and scenarios that often depend on judgements  about potential actions by third parties, such as federal, provincial and local courts or regulators. Contingent liabilities are often resolved over  long periods of time. Amounts recorded in the Consolidated Financial Statements may differ from the actual outcome once the contingency is  resolved. Such differences could have a material impact on future results of operations, financial position and cash flows of the Company. Hydro One is involved in certain legal and environmental matters that arise in the normal course of business. In the preparation of its  Consolidated Financial Statements, management makes judgements regarding the future outcome of contingent events and records a loss for a contingency based on its best estimate when it is determined that such loss is probable and the amount of the loss can be reasonably  estimated. Where the loss amount is recoverable in future rates, a regulatory asset is also recorded. When a range estimate for the probable  loss exists and no amount within the range is a better estimate than any other amount, the Company records a loss at the minimum amount  within the range.  The OMERS plan is accounted for as a defined contribution plan by Hydro One because it is not practicable to determine the present value of the Company’s obligation, the fair value of plan assets or the related current service cost applicable to Hydro One Brampton Networks’ employees. Hydro One recognizes its contributions to the OMERS plan as pension expense, with a portion being capitalized.  The expensed amount is included in operation, maintenance and administration costs in the Consolidated Statements of Operations and  Comprehensive Income. Employees of Hydro One Brampton Networks participate in the Ontario Municipal Employees Retirement System Fund (OMERS), a  multiemployer, contributory, defined benefit public sector pension fund. OMERS provides retirement pension payments based on members’  length of service and salary. Both participating employers and members are required to make plan contributions. The OMERS plan assets are pooled together to provide benefits to all plan participants and the plan assets are not segregated by member entity. OMERS is registered  with the Financial Services Commission of Ontario under Registration #0345983. At December 31, 2012, OMERS had approximately 429,000 members, with approximately 283 members being current employees of Hydro One Brampton Networks. All post-retirement and post-employment future benefit costs are attributed to labour and are either charged to results of operations or capitalized  as part of the cost of property, plant and equipment and intangible assets. For post-employment obligations, the associated regulatory liabilities representing actuarial gains on transition to US GAAP are amortized  to results of operations based on the “corridor” approach. Post transition, the actuarial gains and losses on post-employment obligations  that are incurred during the year are recognized immediately to results of operations. The post-employment benefit obligation is remeasured  to its fair value at each year end based on an annual actuarial report, with an offset to the associated regulatory asset, to the extent of the  remeasurement adjustment. For post-retirement benefits, all actuarial gains or losses are deferred using the “corridor” approach. The amount calculated above the “corridor” is amortized to results of operations on a straight-line basis over the expected average remaining service life of active employees  in the plan and over the remaining life expectancy of inactive employees in the plan. The post-retirement benefit obligation is remeasured  to its fair value at each year end based on an annual actuarial report, with an offset to the associated regulatory asset, to the extent of the  remeasurement adjustment.