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All members contribute 3.25% of their earnings up to the Years Maximum Pensionable Earnings (“YMPE”) and 5% in excess of the YMPE to the maximum that a member can contribute based on income tax rules. The credited service under the Management Plan for each Canadian NEO is 20 years. 

Upon retirement, the employees in the Management Plan are provided lifetime retirement income benefits based on their best five years of salary less Canada Pension benefits. Full benefits are payable at age 65, or at age 60 if the executive has at least 25 years of service. The benefits are payable for life, and 60% is payable to their spouse upon their death with a guarantee of 60 months. Members can retire at age 55 with a reduction. 

In Canada, the Company also guarantees, through its Supplemental Executive Retirement Plan (the “SERP”), to extend pension plan benefits to NEOs that it would to others in the Management Plan who were not affected by income tax maximums. The annual pension amounts derived from the aggregate of Management Plan and SERP benefits represent 1.3% of the 5-year average YMPE plus 2% of the salary remuneration above the 5-year average YMPE. The combination of these amounts is multiplied by the years of service to determine the full annual pension entitlement from the two plans. Four of the Company’s NEOs’ retirees are members of the SERP. 

## u.S. management planS 

In the United States, the Company maintains a defined contribution savings plan under the provisions of the Employment Retirement Income Security Act of 1974 (a 401(k) plan), which covers substantially all employees of the U.S. subsidiary company, including U.S. NEOs. U.S. NEO’s were permitted to contribute up to 20% of their base pay, to a maximum of $16,500 (employees over 50 years of age could contribute an additional $5,500). The Company also makes a Safe Harbour matching contribution equal to 100% of their salary deferrals that do not exceed 3% of their compensation plus 50% of salary deferrals between 3%-5% of their salary compensation. The Company also has a Senior Officer Retirement Program (“SORP”) in the U.S. for a limited number of selected employees. This plan ceased to accrue benefits to employees as of September 30, 2006. 

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(1) the Company has a letter of credit outstanding as at December 31, 2011, relating to the securitization of the Company’s unfunded benefit plans under the SeRp in the amount of $9.7 million (January 1, 2011: $7.5 million and January 3, 2010: $5.7 million). 

## Plan assets comprise: 

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(1) the plan assets include $2.1 million of the Company’s own common shares at market value (January 1, 2011: $1.7 million, and January 3, 2010: $0.9 million). 

