7. Rate Stabilization Funds
| For the years ended December 31 ($ millions) | 2010 | 2009 | ||
| Member fund | ||||
| Balance, beginning of year | $ | 404 | $ | 409 |
| Interest earned on funds | 26 | 27 | ||
| Use of funds for funding deficiency | (32) | (32) | ||
| (6) | (5) | |||
| BALANCE, END OF YEAR | 398 | 404 | ||
| Employer fund | ||||
| Balance, beginning of year | 407 | 529 | ||
| Interest earned on funds | 28 | 27 | ||
| Purchase of collectively bargained temporary benefits | 19 | (117) | ||
| Use of funds for funding deficiency | (32) | (32) | ||
| 15 | (122) | |||
| BALANCE, END OF YEAR | $ | 422 | $ | 407 |
In order to fund the deficit identified in the last funding valuation filed with FSCO, the sponsors have directed that their respective Rate Stabilization Funds be drawn down by a present value of $303 million per sponsor, effective January 1, 2009. This commitment represents an annual draw down of $32 million per sponsor for 15 years.