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14. POST-EMPLOYMENT BENEFITS

12 Months Ended

Dec. 31, 2017

The Company provides post-employment benefits for former Canadian employees who retired on immediate pension prior to 1997. The post-employment benefits provided include life insurance and medical and dental benefits as set out in the applicable group policies, but does not include pensions. No post-employment benefits are provided to employees outside the employee group referenced above. The post-employment benefit plan is not funded.

The effective date of the most recent actuarial valuation of the accrued benefit obligation is October 1, 2016. The amount accrued is based on estimates provided by the plan administrator which are based on past experience, limits on coverage as set out in the applicable group policies and assumptions about future cost trends. The significant assumptions used in the most recent valuation are listed below:

Discount rate of 3.10%;

Medical cost increase trend rates of 7.00% per year in 2017, grading down by 0.125% per year to 4.625% in 2036 and using a rate at 4.00% per year thereafter; and

Dental cost increase trend rates of 4.00% per year for ten years, followed by 3.50% for the next ten years and 3.00% per year thereafter.

The post-employment benefits balance consists of:

		At December 31		At December 31
(in thousands)		2017		2016

Accrued benefit obligation	$	1,886	$	1,832
	$	1,886	$	1,832

Post-employment benefits -by duration:
Current	$	199	$	186
Non-current		1,687		1,646
	$	1,886	$	1,832

The post-employment benefits continuity summary is as follows:

(in thousands)		2017		2016

Balance-January 1	$	1,832	$	2,389
Accretion		57		82
Benefits paid		(130)		(137)
Experience loss (gain) adjustment		-		(580)
Foreign exchange		127		78
Balance-December 31	$	1,886	$	1,832