NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 22: PENSIONS We have contributory and non-contributory defined benefit pension plans that are made available to most of our employees. The plans provide pensions based on years of service, years of contributions and earnings. We do not provide any non-pension post-retirement benefits. We also provide unfunded supplemental pension benefits to certain executives. The assets of the defined benefit pension plans are held in segregated accounts isolated from our assets. We administer the defined benefit pension plans pursuant to applicable regulations, the Statement of Investment Policies and Procedures and to the mandate of the Pension Committee of the Board of Directors. The Pension Committee of the Board of Directors oversees our administration of the defined benefits pension plans, which includes the following principal areas: The assets of the defined benefit pension plans are invested and managed following all applicable regulations and the Statement of Investment Policies and Procedures, and reflect the characteristics and asset mix of each defined benefit pension plan. Investment and market return risk is managed by: The funded pension plans are registered with the Office of the Superintendent of Financial Institutions and are subject to the Federal Pension Benefits Standards Act. The plans are also registered with the Canada Revenue Agency and are subject to the Canada Income Tax Act. The benefits provided under the plans and the contributions to the plans are funded and administered in accordance with all applicable legislation and regulations. Significant estimates are involved in determining pension related balances. Actuarial estimates are based on projections of employees’ compensation levels at the time of retirement. Maximum retirement benefits are primarily based on career average earnings, subject to certain adjustments. The most recent actuarial valuations were completed as at January 1, 2013. Plan assets are comprised mainly of pooled funds that invest in common stocks and bonds that are traded in an active market. The table below shows the fair value of the total pension plan assets by major category for the years ended December 31, 2013 and 2012. The table below shows the accrued benefit obligations arising from funded obligations for the years ended December 31, 2013 and 2012. The table below shows our pension fund assets for the years ended 2013 and 2012. The table below sets out the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded plans at December 31, 2013 and 2012. GLYPH<129> overseeing the funding, administration, communication and investment management of the plans GLYPH<129> selecting and monitoring the performance of all third parties performing duties in respect of the plans, including audit, actuarial and investment management services GLYPH<129> proposing, considering and approving amendments to the defined benefit pension plans GLYPH<129> proposing, considering and approving amendments of the Statement of Investment Policies and Procedures GLYPH<129> reviewing management and actuarial reports prepared in respect of the administration of the defined benefit pension plans GLYPH<129> reviewing and approving the audited financial statements of the defined benefit pension plan funds. GLYPH<129> contracting professional investment managers to execute the investment strategy following the Statement of Investment Policies and Procedures and regulatory requirements GLYPH<129> specifying the kinds of investments that can be held in the plans and monitoring compliance GLYPH<129> using asset allocation and diversification strategies, and GLYPH<129> purchasing annuities from time to time. 118 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT 2013 2012 Plan assets, at fair value $ 1,037 $ 833 Accrued benefit obligations 1,209 1,167 Deficiency of plan assets over accrued benefit obligations (172) (334) Effect of asset ceiling limit (9) – Net deferred pension liability $ (181) $ (334) Consists of: Deferred pension asset $ 8 $ 9 Deferred pension liability (189) (343) Net deferred pension liability $ (181) $ (334) 2013 2012 Plan assets, January 1 $ 833 $ 684 Interest income 40 40 Remeasurements, return on plan assets recognized in other comprehensive income and equity 65 37 Contributions by employees 26 22 Contributions by employer 101 85 Benefits paid (26) (33) Administrative expenses paid from plan assets (2) (2) Plan assets, December 31 $ 1,037 $ 833 2013 2012 Accrued benefit obligations, January 1 $ 1,167 $ 817 Service cost 71 46 Interest cost 52 45 Benefits paid (26) (33) Contributions by employees 26 23 Remeasurements, recognized in other comprehensive income and equity (81) 269 Accrued benefit obligations, December 31 $ 1,209 $ 1,167 2013 2012 Asset ceiling, January 1 $ – $ – Interest income – – Remeasurements, change in asset ceiling (excluding interest income) recognized in comprehensive income and equity (9) – Effect of changes in foreign exchange rates – – Asset ceiling, December 31 $ (9) $ – 2013 2012 Equity securities $ 631 $ 480 Debt securities 403 348 Other – cash 3 5 Total fair value of plan assets $ 1,037 $ 833 The table below shows the effect of the asset ceiling for the years ended December 31, 2013 and 2012.