We have adopted the Restricted Share Unit Plan for Non-Employee Directors, in which our eligible non-employee directors participate. The plan recognizes that the compensation paid to each eligible non-employee director is fixed by our board of directors, generally annually, and that the compensation is payable in cash. Pursuant to the plan, in lieu of receiving some or all of the cash compensation, each eligible non-employee director may elect to receive RSUs. Each election will be generally at or around the first board of directors meeting in January of each calendar year and will be effective for the entire calendar year. An eligible director may make a new election each calendar year. The total number of Restricted Voting Shares authorized under the plan is 156,140, after giving effect to the Return of Capital and Share Consolidation in accordance with board of directors approval and guidelines within the RSU plan.

During 2018 and 2017, we issued RSUs to our non-employee directors of 20,000 and 11,580, respectively (number of shares issued is before our January 4, 2019 Share Consolidation). These RSUs were valued at the time of issuance at $0.4 million and $0.2 million, respectively.

We have adopted the Restricted Share Unit Plan for Employees (the “RSU Plan”) for our eligible employees. The RSU Plan provides that the number of Restricted Voting Shares that may be issued or issuable by the Company pursuant to RSU awards shall not exceed 1,345,093, after giving effect to the Return of Capital and Share Consolidation in accordance with board of directors approval and guidelines within the RSU plan. The purpose of the RSU Plan is to provide incentive to our employees for our future endeavors, to advance our and our shareholders’ interests and to enable us to compete effectively for the services of employees. The RSU Plan is administered by our board of directors, which will have authority to construe and interpret the RSU Plan, including any questions in respect of any RSU awards granted thereunder.


	Year Ended December 31, 2018			May 30, 2017 to December 31, 2017
(Per share amount in Canadian dollars)
	Shares	Weighted Average Grant Date Fair Value per share	Shares	Weighted Average Grant Date Fair Value per share
Outstanding at beginning of period	781,307	15.99	—	—
Granted	85,104	16.63	784,621	15.99
Vested(a)	(703,505)	15.99	—	—
Forfeited	(8,771)	16.19	(3,314)	15.99
Outstanding prior to Return of Capital and Share Consolidation	154,135	16.33	781,307	15.99
Effect of Return of Capital and Share Consolidation	25,167	16.33	—	—
Outstanding at end of period	179,302	16.33	781,307	15.99

RSU awards under the RSU Plan have vesting periods that may range from one-year with variable to three years. Following is a summary of the future vesting of our outstanding RSUs under the RSU Plan:

The compensation costs related to our RSU awards is generally recognized ratably over the vesting period of the RSU awards. Upon vesting, the grants will be paid in our split-adjusted Restricted Voting Shares.

During the year ended December 31, 2018 and 2017, we recognized $7.9 million, which included $6.5 million of expense related to the Trans Mountain Transaction, and $0.7 million, respectively, of expense related to the RSU Plan, and we capitalized $2.1 million and $1.4 million, respectively, related to the RSU Plan. At December 31, 2018, unrecognized compensation costs associated with the RSU awards was approximately $3.5 million with a weighted average remaining amortization period of 2.1 years.

The benefit plans that were provided to our employees prior to the closing of the Trans Mountain Transaction were included in the assets and liabilities held for sale, and we no longer have any obligations for those benefit plans. For our remaining employees, new pension and other postretirement benefit (“OPEB”) plans became effective after the closing of the Trans Mountain Transaction that provide value similar to the prior benefit plans. Our pension benefits provided prior to the close of the Trans Mountain Transaction were under a defined benefit pension formula and are now provided under a registered defined contribution pension plan (“DCPP”) and a supplemental unfunded arrangement (“SPP”) which provides pension benefits in excess of Income Tax Act limits. Our new OPEB plan benefits are relatively consistent with the prior OPEB plan. As a result of the Trans Mountain Transaction, we released $36.3 million of benefit plan losses.

Our pension benefits cover eligible employees and are provided under the DCPP and SPP. We contribute a percentage of eligible compensation based on a combination of age and years of service. The total cost for our DCPP was approximately $0.5 million for the period from September 1, 2018 to December 31, 2018.

The SPP benefits are unfunded and annual expense is recorded on an accrual basis based on an independent actuarial determination. No employees have accrued a benefit under the SPP as of December 31, 2018; therefore, no information on the SPP is provided in the tables below.

Our OPEB plan benefits are provided to eligible current and future retirees and their spouses in the form of a healthcare spending account. Postretirement benefits are unfunded and annual expense is recorded on an accrual basis based on independent actuarial determination. The most recent actuarial valuation for accounting purposes was completed as of December 31, 2018.



For the Periods Ended December 31, 2018
(In millions of Canadian dollars)
Change in benefit obligation
Benefit obligation at September 1, 2018						1.8
Service cost						0.1
Interest cost						—
Actuarial loss (gain)						(0.1)
Benefits paid						—




Benefit obligation at December 31, 2018						1.8










Presented as follows:
Current benefit liability(a)						—
Non-current benefit liability(b)						(1.8)
						(1.8)

We include the amounts of pre-tax accumulated other comprehensive loss related to the OPEB plans on our accompanying balance sheets. These balances exclude amounts recoverable through tolls and are immaterial.

Benefit obligations and net benefit cost are based on actuarial estimates and assumptions. The following table details the weighted-average actuarial assumptions used in determining the benefit obligation and net benefit costs of our OPEB plan:


For the Year Ended December 31,									2018
Assumptions related to benefit obligations:
Discount rate									3.91%
Assumptions related to benefit costs:
Discount rate for benefit obligations									3.76%
Discount rate for interest on benefit obligations									3.67%
Discount rate for service cost									3.78%
Discount rate for interest on service cost									3.74%