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Pensions and other benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost
The elements of net periodic benefit cost for DB pension plans and other benefits recognized in the year include the following components:
 PensionsOther benefits
(in millions of Canadian dollars)202120202019202120202019
Current service cost (benefits earned by employees)$171 $140 $107 $13 $12 $11 
Other components of net periodic benefit (recovery) cost:
Interest cost on benefit obligation351 406 450 16 17 20 
Expected return on fund assets(959)(945)(947)— — — 
Recognized net actuarial loss206 177 84 (1)4 12 
Amortization of prior service (recoveries) costs— (1)(1)— — 1 
Total other components of net periodic benefit (recovery) cost(402)(363)(414)15 21 33 
Net periodic benefit (recovery) cost$(231)$(223)$(307)$28 $33 $44 
Schedule of Changes in Projected Benefit Obligation
Information about the Company’s DB pension plans and other benefits, in aggregate, is as follows:
 PensionsOther benefits
(in millions of Canadian dollars)2021202020212020
Change in projected benefit obligation:
Benefit obligation at January 1$13,799 $12,610 $553 $541 
Current service cost171 140 13 12 
Interest cost351 406 16 17 
Employee contributions42 42 — — 
Benefits paid(667)(653)(31)(34)
Foreign currency changes— (5)— — 
Plan amendments and other— 3 — — 
Actuarial loss (gain)(812)1,256 (48)17 
Projected benefit obligation at December 31$12,884 $13,799 $503 $553 
Schedule of Changes in Fund Assets
 PensionsOther benefits
(in millions of Canadian dollars)2021202020212020
Change in fund assets:
Fair value of fund assets at January 1$14,365 $13,319 $5 $5 
Actual return on fund assets1,180 1,634 — — 
Employer contributions18 27 31 34 
Employee contributions42 42 — — 
Benefits paid(667)(653)(31)(34)
Foreign currency changes— (4)— — 
Fair value of fund assets at December 31$14,938 $14,365 $5 $5 
Funded status – plan surplus (deficit)$2,054 $566 $(498)$(548)
Funded Status of Pension Plans
The table below shows the aggregate pension projected benefit obligation and aggregate fair value of plan assets for pension plans with fair value of plan assets in excess of projected benefit obligations (i.e. surplus), and for pension plans with projected benefit obligations in excess of fair value of plan assets (i.e. deficit):
 20212020
(in millions of Canadian dollars)Pension
plans in
surplus		Pension
plans in
deficit		Pension
plans in
surplus		Pension
plans in
deficit
Projected benefit obligation at December 31$(12,346)$(538)$(13,220)$(579)
Fair value of fund assets at December 3114,663 275 14,114 251 
Funded status$2,317 $(263)$894 $(328)
Pension Asset and Liabilities in the Company's Consolidated Balance Sheets
Amounts recognized in the Company’s Consolidated Balance Sheets are as follows:
 PensionsOther benefits
(in millions of Canadian dollars)2021202020212020
Pension asset$2,317 $894 $— $— 
Accounts payable and accrued liabilities(11)(11)(32)(33)
Pension and other benefit liabilities(252)(317)(466)(515)
Total amount recognized$2,054 $566 $(498)$(548)
Accumulated Other Comprehensive Loss
Amounts recognized in accumulated other comprehensive loss are as follows:
 PensionsOther benefits
(in millions of Canadian dollars)2021202020212020
Net actuarial loss:
Other than deferred investment gains$3,298 $3,960 $57 $104 
Deferred investment gains(672)(95)— — 
Prior service cost5 5 1 1 
Deferred income tax(759)(1,070)(15)(27)
Total (Note 8)
$1,872 $2,800 $43 $78 
Actuarial Assumptions
Weighted-average actuarial assumptions used were approximately:
(percentages)202120202019
Benefit obligation at December 31:
Discount rate3.01 2.58 3.25 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate (1)
5.00 5.00 5.50 
Benefit cost for year ended December 31:
Discount rate2.58 3.25 4.01 
Expected rate of return on fund assets (2)
6.90 7.25 7.50 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate (1)
5.00 5.50 6.00 
(1) The health care cost trend rate was assumed to be 6.00% in 2019 and 5.50% in 2020 and is assumed to be 5.00% per year in 2021 and thereafter.
(2) The expected rate of return on fund assets that will be used to compute the 2022 net periodic benefit credit is 6.90%.
Pension Plan Asset Allocation and Weighted-average Policy Ranges
The Company’s pension plan asset allocation, the weighted-average asset allocation targets, and the weighted average policy range for each major asset class at year end were as follows:
 Percentage of plan assets
at December 31
Asset allocation (percentage)Asset allocation targetPolicy range20212020
Cash and cash equivalents1.2 
0 – 10
3.1 2.0 
Fixed income24.1 
20 – 40
24.1 28.1 
Public equity45.1 
35 – 55
50.5 49.3 
Real estate and infrastructure9.8 
4 – 13
6.7 6.3 
Private debt9.8 
4 – 13
4.6 3.3 
Absolute return10.0 
4 – 13
11.0 11.0 
Total100.0 100.0 100.0 
Summary of the Assets of the Company's DB Pension Plans
The following is a summary of the assets of the Company’s DB pension plans at December 31, 2021 and 2020. As of December 31, 2021 and 2020, there were no plan assets classified as Level 3 valued investments.
Assets Measured at Fair Value
Investments
measured at NAV(1)
Total Plan
Assets
(in millions of Canadian dollars)Quoted prices in
active markets
for identical assets (Level 1)		Significant other observable inputs (Level 2)
December 31, 2021
Cash and cash equivalents$363 $— $— $363 
Fixed income
Government bonds(2)
232 1,704 — 1,936 
Corporate bonds(2)
569 868 — 1,437 
Mortgages(3)
230 4 — 234 
Public equities
Canada1,004 — — 1,004 
U.S. and international6,536 — — 6,536 
Real estate(4)
— — 732 732 
Infrastructure(5)
— — 263 263 
Private debt(6)
— — 682 682 
Derivative instruments(7)
— 106 — 106 
Absolute return(8)
Funds of hedge funds— — 1,621 1,621 
Multi-strategy funds— — 24 24 
$8,934 $2,682 $3,322 $14,938 
December 31, 2020
Cash and cash equivalents$219 $— $— $219 
Fixed income
Government bonds(2)
284 1,699 — 1,983 
Corporate bonds(2)
691 1,144 — 1,835 
Mortgages(3)
220 5 — 225 
Public equities
Canada1,183 — — 1,183 
U.S. and international5,871 28 — 5,899 
Real estate(4)
— — 704 704 
Infrastructure(5)
— — 199 199 
Private debt(6)
— — 465 465 
Derivative instruments(7)
— 71 — 71 
Absolute return(8)
Funds of hedge funds— — 1,560 1,560 
Multi-strategy funds— — 22 22 
$8,468 $2,947 $2,950 $14,365 
(1) Investments measured at net asset value ("NAV"):
Amounts are comprised of certain investments measured using NAV (or its equivalent) as a practical expedient. These investments have not been classified in the fair value hierarchy.
(2) Government & Corporate Bonds:
Fair values for bonds are based on market prices supplied by independent sources as of the last trading day.
(3) Mortgages:
The fair values of mortgages are based on current market yields of financial instruments of similar maturity, coupon and risk factors.
(4) Real estate:
Real estate fund values are based on the NAV of the funds that invest directly in real estate investments. The values of the investments have been estimated using the capital accounts representing the plan’s ownership interest in the funds. Of the total, $613 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2020 – $580 million). The remaining $119 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying real estate investments (2020 – $124 million). As at December 31, 2021, there are $32 million of unfunded commitments for real estate investments (December 31, 2020 – $32 million).
(5) Infrastructure:
Infrastructure fund values are based on the NAV of the funds that invest directly in infrastructure investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $107 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2020 – $112 million). The remaining $156 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying infrastructure investments (2020 – $87 million). As at December 31, 2021, there are $814 million of unfunded commitments for infrastructure investments (December 31, 2020 – $491 million).
(6) Private debt:
Private debt fund values are based on the NAV of the funds that invest directly in private debt investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $152 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2020 – $154 million). The remaining $530 million is not subject to redemption and is normally returned through distributions as a result of the repayment of the underlying loans (2020 - $311 million). As at December 31, 2021, there are $774 million of unfunded commitments for private debt investments (December 31, 2020 – $533 million).
(7) Derivatives:
The investment managers may utilize the following derivative instruments: equity futures to replicate equity index returns (Level 2); currency forwards to partially hedge foreign currency exposures (Level 2); bond forwards to reduce asset/liability interest rate risk exposures (Level 2); interest rate swaps to manage duration and interest rate risk (Level 2); credit default swaps to manage credit risk (Level 2); and options to manage interest rate risk and volatility (Level 2). The Company may utilize derivatives directly, but only for the purpose of hedging foreign currency exposures. As at December 31, 2021, there are currency forwards with a notional value of nil (December 31, 2020 – $1,041 million) and a fair value of $6 million (December 31, 2020 – $73 million). The fixed income investment manager utilizes a portfolio of bond forwards for the purpose of reducing asset/liability interest rate exposure. As at December 31, 2021, there are bond forwards with a notional value of $2,967 million (December 31, 2020 – $3,540 million) and a fair value of $100 million (December 31, 2020 – $(2) million).
(8) Absolute return:
The value of absolute return fund investments is based on the NAV reported by the fund administrators. The funds have different redemption policies with redemption notice periods varying from 60 to 95 days and frequencies ranging from monthly to triennially.
Estimated Future Benefit Payments
The estimated future DB pension and other benefit payments to be paid by the plans for each of the next five years and the subsequent five-year period are as follows:
(in millions of Canadian dollars)PensionsOther benefits
2022$645 $32 
2023637 31 
2024638 30 
2025639 29 
2026640 29 
2027-20313,209 136