Enforcement sanctions include administrative penalties, settlements and unclaimed disgorgements. Revenues depend on

the timing of enforcement actions completed during the year and on our ability to collect assessed amounts.

We assessed enforcement sanctions of $55.9 million (fiscal 2011 - $57.0 million) during the period, of which we did not

recognize $55.7 million (fiscal 2011 - $56.6 million) as revenue because we do not expect to receive payment.

Collecting enforcement sanctions can be difficult because respondents often have limited assets, poor credit or have left

British Columbia. We pursue outstanding amounts as appropriate, to maximize sanction receipts, net of collection costs.

We, and our employees, contribute to the Public Service Pension Plan, a multi-employer plan. The plan is contributory,

and its basic benefits are defined. The plan has about 57,000 active members and approximately 36,000 retired

members. A board of trustees, representing plan members and employers, is responsible for overseeing the management

of the plan, including investment of assets and administration of benefits.

An actuarial valuation of the plan performed every three years assesses the plan’s financial position. The latest

valuation, as at March 31, 2011, indicated a $275 million deficit for basic pension benefits. In order to fund the liability,

both employee and employer contribution rates increased, effective April 1, 2012. In addition to basic benefits, the plan

also provides supplementary benefits, including inflation indexing. These supplementary benefits are paid only to the

extent that they have been funded, which is currently done on a "pay-as-you-go" basis.

The plan trustees monitor the impact of the financial environment on plan health. Plan surpluses and deficits are not

attributable to individual employers, but affect future contribution levels. We charged $1.9 million to expense for

employer contributions during the period (fiscal 2011 - $1.7 million).