Notes to Consolidated Financial Statements

1.		Nature of Operations
2.		Summary of Significant Accounting Policies
3.		Inventory
4.		Capital Assets
5.		Investments
6.		Intangible Assets and Goodwill
7.		Loan Payable
8.		Consolidated Statement of Cash Flows
9.		Contingencies
10.		Retirement Benefit Plans
11.		Commitments
12.		Financial Instruments and Risk Management

			2007 $		2006 $
Accrued benefit obligation			183,995		179,840
Fair value of plan assets			233,640		202,541
Funded status - plan surplus			49,645		22,701
Accrued benefit asset			38,724		32,575
Components of net periodic pension cost
Current service cost [employer portion]			6,112		5,014
Interest cost			9,173		8,977
Actual return on plan assets			(28,111)		(25,982)
Actuarial loss (gain)			(9,279)		17,183
Costs (recovery) arising in the year			(22,105)		5,192
Differences between costs arising in the year and     costs recognized in the year in respect of
Return on plan assets			13,816		13,741
Actuarial loss (gain)			9,890		(16,674)
Past service costs			781		781
Transitional asset			(3,623)		(3,623)
Net periodic pension cost (recovery)			(1,241)		(583)
			2007 $		2006 $
Changes in accrued benefit obligation
Benefit obligation, beginning of year			179,840		149,936
Current service cost [employer portion]			6,112		5,014
Interest cost			9,173		8,977
Employee contributions			1,952		1,979
Actual benefits paid			(3,803)		(3,249)
Actuarial loss (gain)			(9,279)		17,183
Accrued benefit obligation, end of year			183,995		179,840
			2007 $		2006 $
Change in plan assets
Market value of plan assets, beginning of year			202,541		172,970
Actual return on plan assets			28,108		25,982
Employer contributions			4,842		4,859
Employee contributions			1,952		1,979
Actual benefits paid			(3,803)		(3,249)
Fair value of plan assets, end of year			233,640		202,541
The fair value of the assets of the defined benefit pension plans has been used to determine the net pension expense for the years ended March 31, 2007 and 2006.
Plan assets by asset category are as follows:
			2007 %		2006 %
Equity securities			67.8		64.9
Fixed income			28.8		28.6
Other			3.4		6.5
			100.0		100.0
			2007 $		2006 $
Reconciliation of funded status to accrued benefit asset
Funded status - plan surplus			49,645		22,701
Employer contributions after measurement date			1,352		1,286
Unamortized transitional asset			(25,237)		(28,860)
Unamortized past service costs			6,135		6,916
Unamortized net actuarial loss			6,829		30,532
Accrued benefit asset			38,724		32,575

Defined benefit pension plans	Last actuarial valuation date		Next actuarial valuation date
Salaried Employees	December 31, 2004		December 31, 2007
Members of Local 967 of     The Canadian Union of Public Employees	December 31, 2004		December 31, 2007
Members of Local 4559 of     The Canadian Union of Public Employees	December 31, 2004		December 31, 2007
Designated Executive Employees	December 31, 2004		December 31, 2007

The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligation and costs are as follows [weighted average assumptions]:
Defined benefit pension plans			2007 %		2006 %
Accrued benefit obligation
Discount rate for pension cost			5.10		6.00
Discount rate for accrued benefit obligation			5.20		5.10
Expected long-term rate of return on plan assets			7.00		7.00
Rate of compensation increase			4.00		4.00
Other information about the Association's defined benefit pension plans is as follows:
			2007 $		2006 $
Employer contributions			4,842		4,859
Employee contributions			1,952		1,979
Benefits paid			3,803		(3,249)
Information about the Association's other retirement and post-employment benefit plans, in aggregate, is as follows:
			2007 $		2006 $
Accrued benefit obligation			37,655		38,967
Fair value of plan assets			–		–
Funded status - plan deficit			(37,655)		(38,967)
Accrued benefit liability			(22,370)		(17,716)
			2007 $		2006 $
Components of net periodic benefit cost
Current service cost			2,083		1,508
Interest cost			2,016		1,869
Actuarial loss (gain)			(4,713)		6,046
Costs (recovery) arising in the year			(614)		9,423
Differences between costs arising in the year     and costs recognized in the year in respect of
Actuarial loss (gain)			5,116		(5,993)
Transitional obligation			844		844
Net periodic benefit cost recognized			5,346		4,274
			2007 $		2006 $
Change in accrued benefit obligation
Accrued benefit obligation, beginning of year			38,967		30,115
Current service cost			2,083		1,508
Interest cost			2,016		1,869
Benefits paid			(698)		(571)
Actuarial loss (gain)			(4,713)		6,046
Accrued benefit obligation, end of year			37,655		38,967
			2007 $		2006 $
Reconciliation of funded status to accrued benefit liability
Plan deficit, end of year			(37,655)		(38,967)
Employer contributions during the year from measurement date     to fiscal year end			139		145
Unamortized transitional obligation			9,283		10,127
Unamortized net actuarial loss			5,863		10,979
Accrued benefit liability			(22,370)		(17,716)
The significant actuarial assumptions adopted in measuring the Association's accrued benefit obligation and costs are as follows [weighted average assumptions]:
			2007 %		2006 %
Weighted average assumptions for expense
Discount rate			5.10		6.25
Rate of compensation increase			4.00		4.00
Initial prescription drug trend rate			9.00		9.50
Ultimate prescription drug trend rate			5.00		5.00
Year ultimate rate reached	2013			2013
Initial semi-private hospital and other medical costs trend rate			5.00		5.00
Ultimate semi-private hospital and other medical costs trend rate			5.00		5.00
Initial dental care trend rate			5.00		5.00
Ultimate dental care trend rate			5.00		5.00
Initial weighted average health care trend rate			6.38		6.53
Ultimate weighted average health care trend rate			5.00		5.00
Year ultimate rate reached	2013			2013
Weighted average assumptions for disclosure
Discount rate			5.30		5.10
Rate of compensation increase			4.00		4.00
Initial prescription drug trend rate			8.50		9.00
Ultimate prescription drug trend rate			5.00		5.00
Year ultimate rate reached	2017			2013
Initial semi-private hospital and other medical costs trend rate			5.00		5.00
Ultimate semi-private hospital and other medical costs trend rate			5.00		5.00
Initial dental care trend rate			5.00		5.00
Ultimate dental care trend rate			5.00		5.00
Initial weighted average health care trend rate			6.23		6.38
Ultimate weighted average health care trend rate			5.00		5.00
Year ultimate rate reached	2017			2013
A 1% [2006 - 1%] increase or decrease in the health care cost trend rates would result in a $7,538 [2006 - $8,883] increase or $5,884 [2006 - $6,791] decrease in the accrued benefit obligation as at March 31, 2007 and a $1,168 [2006 - $849] increase or $888 [2006 - $642] decrease in the service and interest cost for the year ended March 31, 2007. Information about the Association's other retirement and post-employment benefit plans is as follows:
			2007 $		2006 $
Employer contributions			692		571
Benefits paid			692		571