BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
British Columbia Hydro and Power Authority
(d) The significant assumptions adopted in measuring the Company’s accrued benefit obligations as at
each March 31 year end are as follows:
Pension
Benefit Plans
Other
Benefit Plans
2016 2015 2016 2015
Discount rate
Benefit cost 3.51% 4.37% 3.79% 4.59%
Accrued benefit obligation 3.81% 3.51% 3.72% 3.79%
Rate of return on plan assets 3.51% 4.37% n/a n/a
Rate of compensation increase
Benefit cost 3.35% 3.35% n/a n/a
Accrued benefit obligation 3.35% 3.35% n/a n/a
Health care cost trend rates
Weighted average health care cost trend rate n/a n/a 5.10% 5.47%
Weighted average ultimate health care cost trend rate n/a n/a 4.29% 4.39%
Year ultimate health care cost trend rate will be achieved n/a n/a 2026 2026
The valuation cost method for the accrued benefit obligation is the projected accrued benefit pro-rated
on service.
(e) Asset allocation of the defined benefit statutory pension plan as at the measurement date:
Target Range
Target Allocation Min Max 2016 2015
Equities 57% 41% 76% 60% 62%
Fixed interest investments 29% 19% 39% 30% 28%
Real estate 10% 5% 15% 8% 9%
Infrastructure 4% 0% 10% 2% 1%
Plan assets are re-balanced within ranges around target applications. The Company’s expected return
on plan assets is determined by considering long-term historical returns, future estimates of long-term
investment returns and asset allocations.
(f) Other information about the Company’s benefit plans is as follows:
The Company’s contribution to be paid to its funded defined benefit plan in fiscal 2017 is expected to
amount to $57 million. The expected benefit payment to be paid in fiscal 2017 in respect to the
unfunded defined benefit plan is $19 million.