District of Lake Country

Notes to the Financial Statements

For the year ended December 31, 2022

11. Contingent liabilities and commitments (continued)

Pension liability (continued)

The most recent valuation for the Municipal Pension Plan as at December 31, 2022 indicated a $3,761 million funding surplus for basic pension benefits on a going concern basis.

The District paid $706,234 (2021 - $682,711) for employer contributions, while employees contributed $641,780 (2021 - $593,963) to the plan in fiscal 2022

The next valuation will be as at December 31, 2024 with results available in 2025

Employers participating in the plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plan.

Letter of Credit

The District holds an irrevocable letter of credit in the amount of $97,540. The letter of credit is being held as a deposit on a capital project being administered by the Department of Fisheries and Oceans.

Commitments

The District has entered into various agreements and contracts for services with periods ranging from one to twenty years.