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POST-EMPLOYMENT BENEFITS (Tables)
12 Months Ended
Dec. 31, 2021
Employee Benefits [Abstract]  
Disclosure of defined benefit plans actuarial assumptions and contributions
Principal actuarial assumptions
20212020
Weighted average of significant assumptions:
 
Defined benefit obligation
Discount rate3.3 %2.7 %
Rate of compensation increase
1.0% to 4.5%, based on employee age
1.0% to 4.5%, based on employee age
Mortality rateCPM2014Priv with Scale CPM-BCPM2014Priv with Scale CPM-B
Pension expense
Discount rate2.7 %3.2 %
Rate of compensation increase
1.0% to 4.5%, based on employee age
1.0% to 4.5%, based on employee age
Mortality rateCPM2014Priv with Scale CPM-BCPM2014Priv with Scale CPM-B
Below is a summary of the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded defined benefit pension plans.
As at December 31
(In millions of dollars)Note20212020
Plan assets, at fair value3,198 2,791 
Accrued benefit obligations(3,171)(3,365)
Surplus (deficiency) of plan assets over accrued benefit obligations27 (574)
Effect of asset ceiling limit(9)— 
Net deferred pension asset (liability)18 (574)
Consists of:
Deferred pension asset21 16 
Deferred pension liability22 (3)(590)
Net deferred pension asset (liability)18 (574)
Below is a summary of the actual contributions to the plans.
Years ended December 31
(In millions of dollars)20212020
Employer contribution177 150 
Employee contribution32 34 
Total contribution209 184 
Disclosure of sensitivity of key assumptions
Sensitivity of key assumptions
In the sensitivity analysis shown below, we determine the defined benefit obligation for our funded plans using the same method used to calculate the defined benefit obligation we recognize on the Consolidated Statements of Financial Position. We calculate sensitivity by changing one assumption while holding the others constant. This leads to limitations in the analysis as the actual change in defined benefit obligation will likely be different from that shown in the table, since it is likely that more than one assumption will change at a time, and that some assumptions are correlated.
 Increase (decrease) in accrued benefit obligation
(In millions of dollars)20212020
 
Discount rate
Impact of 0.5% increase
(251)(279)
Impact of 0.5% decrease
285 319 
 
Rate of future compensation increase
Impact of 0.25% increase
17 20 
Impact of 0.25% decrease
(17)(20)
 
Mortality rate
Impact of 1 year increase
67 76 
Impact of 1 year decrease
(72)(80)
Disclosure of net defined benefit liability (asset)
Below is a summary of our pension fund assets.
Years ended December 31
(In millions of dollars)20212020
Plan assets, beginning of year2,791 2,449 
Interest income78 81 
Remeasurements, recognized in other comprehensive income and equity
223 163 
Contributions by employees32 34 
Contributions by employer177 150 
Benefits paid(99)(82)
Administrative expenses paid from plan assets(4)(4)
Plan assets, end of year3,198 2,791 

Below is a summary of the accrued benefit obligations arising from funded obligations.
Years ended December 31
(In millions of dollars)20212020
Accrued benefit obligations, beginning of year3,365 2,900 
Current service cost156 146 
Interest cost89 91 
Benefits paid(99)(82)
Contributions by employees32 34 
Remeasurements, recognized in other comprehensive income and equity(372)276 
Accrued benefit obligations, end of year3,171 3,365 
Below is a summary of our net pension expense. Net interest cost is included in finance costs; other pension expenses are included in salaries and benefits expense in operating costs on the Consolidated Statements of Income.
Years ended December 31
(In millions of dollars)20212020
Plan cost:
Current service cost156 146 
Net interest cost11 10 
Net pension expense167 156 
Administrative expense4 
Total pension cost recognized in net income171 160 

Net interest cost, a component of the plan cost above, is included in finance costs and is outlined as follows:
Years ended December 31
(In millions of dollars)20212020
Interest income on plan assets(78)(81)
Interest cost on plan obligation89 91 
Net interest cost, recognized in finance costs11 10 

The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows:
Years ended December 31
(In millions of dollars)20212020
Return on plan assets (excluding interest income)223 163 
Change in financial assumptions390 (272)
Effect of experience adjustments(18)(4)
Change in asset ceiling(9)— 
Remeasurement gain (loss), recognized in other comprehensive income and equity586 (113)
We also provide supplemental unfunded defined benefit pensions to certain executives. Below is a summary of our accrued benefit obligations, pension expense included in employee salaries and benefits, net interest cost, remeasurements, and benefits paid.
Years ended December 31
(In millions of dollars)20212020
Accrued benefit obligation, beginning of year92 73 
Pension expense, recognized in employee salaries and benefits expense12 13 
Net interest cost, recognized in finance costs3 
Remeasurements, recognized in other comprehensive income(7)
Benefits paid(4)(5)
Accrued benefit obligation, end of year96 92 
Disclosure of fair value of plan assets
Plan assets comprise mainly pooled funds that invest in common stocks and bonds that are traded in an active market. Below is a summary of the fair value of the total pension plan assets by major category.
As at December 31
(In millions of dollars)20212020
Equity securities1,879 1,689 
Debt securities1,302 1,087 
Other - cash17 15 
Total fair value of plan assets3,198 2,791 
ALLOCATION OF PLAN ASSETS
 Allocation of plan assetsTarget asset allocation percentage
20212020
Equity securities:
Domestic11.8 %11.9 %
8% to 18%
International47.0 %48.6 %
37% to 67%
Debt securities40.7 %39.0 %
25% to 45%
Other - cash0.5 %0.5 %
0% to 2%
Total100.0 %100.0 %