Pension provisions

Pension provisions must be computed actuarially under specific and detailed
rules. In most cases, an under-provision in any one year cannot be recovered by
simply recalculating the provision in future years, but, rather, must be carried
forward until the employee’s pension falls due. The funding of pension
promises and the vesting of pension rights do not, as such, affect the
calculations of the tax-deductible provisions.

Prior or past service cost is spread
over the period in which the provision accumulates to its balance on retirement
date. No provision may be taken up for employees under 28.